The Manx government is considering what next steps it could take following a key court ruling in a long-running tax fraud inquiry.

Criminal proceedings against Paul Bell have been halted after the high court ruled the off-island barrister who issued the summons against him was not authorised to do so.

In a second judgment delivered last week Deemster Andrew Corlett ordered that Timothy Green KC pay the costs of Mr Bell’s doleance claim.

Police are now considering all options in consultation with the Attorney General’s chambers.

Paul Anthony Bell faced charges alleging perjury relating to events said to have taken place a decade ago.

Mr Bell was investigated as part of ‘Operation Braid’, a complex and long-running investigation into tax fraud, money laundering, perjury and Bankruptcy Code offences.

His wife Sarah Louise Bell was alleged to be his associate as was island advocate John Wright.

All three were charged with perjury and conspiring to commit perjury.

But in a judgment Deemster Corlett nullified the criminal proceedings instigated against all three.

In November 2014 London-based barrister Timothy Green KC was authorised by the then Chief Minister Allan Bell to act in the case as the acting Attorney General, the late John Quinn had a conflict of interest.

The Bells argued that the summons issued against them in May last year was invalid as Mr Green’s authority had lapsed.

Deemster Cook, sitting as a Deputy High Bailiff, ruled in November that the criminal proceedings instigated by Mr Green were valid.

This ruling was challenged in the Bells’ doleance claims and Deemster Andrew Corlett last month ruled in their favour.

Deemster Corlett quashed the Deputy High Bailiff’s ruling and declared that the criminal proceedings purportedly commenced on May 13, 2022, against all the defendants are a nullity.

He said there was no suggesting of a breach of the rules of procedural fairness.

But he said: ‘I am satisfied that the court has erred in law in coming to the decision that Mr Green KC was authorised to institute these criminal proceedings.’

Mr Green had insisted his authorisation had just the one condition, that he was limited to Operation Braid. But Deemster Corlett found the directions granted Mr Green were of a temporary nature and by the time the summons was issued circumstances had changed.

By that date Walter Wannenburgh had been appointed Solicitor General.

This role replaced the need for an acting Attorney General, when the John Quinn became AG on a permanent basis in March 2017.

In a statement, the Manx government said: ‘The judgment by Deemster Corlett is currently being reviewed and the options for any next steps considered.’

In his second judgment handed down last week, Deemster Corlett ordered that Mr Green pay the costs of the doleance claims but remitted the issue to the Deputy High Bailiff to make an appropriate costs order.