The news came during a question and answer session following a press briefing for the launch of the new public face of the Inland Revenue as their cartoon character 'Hector' is shown the door.
Shout99 asked the Paymaster General whether it was fair to penalise contractors who were uncertain of which side they stood of IR35.
Paymaster General, Dawn Primarolo, said: "There is no uncertainty about the legislation.
"The legislation was introduced in the Finance Bill with the backing of Ministers and has always made itself clear as to who it would affect. People have a perfect right to challenge any law the Government has introduced but the case made no difference to the fact that they would still have to comply with it. The court ruled in our favour on all counts."
Responding to suggestions that the judge sympathised with the issue of uncertainty put forward by the Professional Contractors Group, Ms. Primarolo and the Director of the Inland Revenue, Nick Montague both denied that that was the case.
Dawn Primrolo replied: "No, he didn't. There was no case to answer. The Judge did say that the guidance should be re-phrased and we have re-phrased it and done what the Judge said. He awarded costs and refused the right to appeal, but has now given an appeal the go-ahead. As regards the legislation, we can't freeze it and it will continue to apply to everyone."
The judge's comments suggested how the Government could make the legislation easier to understand and work with. "It is essential that there is a sensitive and co-operative approach taken by [Revenue] inspectors, and that the Revenue guidance is clear and helpful, but the Revenue documentation has not always been either," Judge Burton said in his judgement.
Having described the Revenue's guidance as 'inappropriate, unclear, inflexible, inaccurate and unhelpful,' Justice Burton also made reference to the 'unnecessary emotive' and 'colourful' language in the original press notice-IR35, which set the tone for a hostile debate.
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Richard Powell, Shout99
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