Law firm broadens lawsuit against HMRC

Law firm broadens lawsuit against HMRC

Group Litigation Order to challenge for damages and withheld VAT

The remit of a Group Litigation Order being brought by law firm DLA Piper
against HM Revenue & Customs is to be extended to also sue for damages
caused to traders by the taxman withholding VAT under its ‘extended
verification’ rule’.

To date 50 traders have joined the GLO and anyone else wishing to join has
another six months to do so.

Beside the claim for damages, DLA Piper will challenge HMRC to return VAT
that is still being withheld from mobile phone and central processing unit (CPU)
traders on the basis of ‘non-economic activity’.

Around 150 traders still have VAT withheld by HMRC despite its defeat in the
Bond House case in the ECJ in January.

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