5 July 2018

Results of the Paragraph 322(5) Investigation: tax discrepancies and the Points Basted System

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Thousands of applications for leave to remain and indefinite leave to remain under the Points Based System has been refused under paragraph 322(5) of the Immigration Rules.

Rule 322(5) allows for applications to be refused where it would be undesirable to allow the applicant to remain in the UK because of his conduct (including certain convictions), character or associations or because he represents a threat to national security. This has been a cause of concern with campaigners arguing that the Home Office is systematically refusing applications based on errors which are easily explainable.

The Home Office is, therefore, conducting the Paragraph 322(5) Investigation, a two-stage review of this matter. Caroline Nokes, on behalf of the Home Office, advocates that the refusals were correct because of tax discrepancies and exaggerated earnings present in the applications. She gave examples of the following patterns to illustrate her point:

  • 249 applicants amended their HMRC records by over £10,000. Whilst some differences were less than this figure, they were still significant;
  • Many applicants amended their HMRC records three years after the initial submission; and
  • When given the chance to explain, many applicants either gave no explanation or blamed their accountants for the errors.

These were just the results of the first stage of the review and the second stage is yet to conclude. It remains to be seen what the overall outcome and impact of the review will be.

About the Author

Mahnoor has extensive experience in dealing with various types of in-country and out-of-country immigration matters. This includes advising and assisting clients on a vast spectrum of immigration applications, ranging from Entry Clearance to British citizenship.

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