Tuesday, July 24, 2007
DEMONSTRATORS: VAT interest should be 'compound'
COMPANIES claiming-back advanced corporation tax will be able to claim compound rather than simple interest on the repayments.
Following a landmark House of Lord's decision, it means that repayments of VAT that had been incorrectly levied on demonstrator vehicles could soon be significantly increased.
The House of Lords judgment on Sempra Metals Ltd means that taxpayers previously required to prematurely account for corporation tax are entitled to restitution, calculated by compound interest. The previous system, where compensation was based on simple interest, was found to be in breach of EU law.
The National Franchised Dealers Association has already commissioned, and received, detailed advice from Price Waterhouse Coopers in respect of the different options available to its members to pursue such a claim.
DATED: 24.07.07
FEED: AW
Following a landmark House of Lord's decision, it means that repayments of VAT that had been incorrectly levied on demonstrator vehicles could soon be significantly increased.
The House of Lords judgment on Sempra Metals Ltd means that taxpayers previously required to prematurely account for corporation tax are entitled to restitution, calculated by compound interest. The previous system, where compensation was based on simple interest, was found to be in breach of EU law.
The National Franchised Dealers Association has already commissioned, and received, detailed advice from Price Waterhouse Coopers in respect of the different options available to its members to pursue such a claim.
DATED: 24.07.07
FEED: AW
