16:35 10 Jul 2006
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Composite company Gabem Management is still in limbo as it awaits a High Court judgment on the status of its CIS5 certificate.
HM Revenue & Customs had revoked the firm’s certificate, leading to Gabem’s appeal. After hearing the case in private on Friday, the judge deferred his decision until later in the month, saying that the case had such wide-reaching impact for the construction industry that it warranted further time for consideration.
If the court upholds the Revenue’s decision, it could set a precedent preventing composite companies such as Gabem from operating as they do at present, and affecting the thousands of workers paid through arrangements with Gabem and similar companies.
According to Gabem’s website and spokesperson, the company will operate normally while awaiting the outcome of the case.