Treasury faces 'horrifying' VAT bill
Court ruling opens the way for huge number of claims
The Treasury could be facing ‘horrifying’ bills as a result of a VAT ruling
that could allow businesses to claim VAT as far back as 1973.
The Court of Appeal ruled last month that a three-year time limit on claims,
established during the 1990s, was incompatible with EU law.
Experts at Ernst & Young were reported in The Financial Time today saying
that the case could have a ‘horrifying’ impact on Treasury receipts: ‘One of the
biggest issues in VAT is coming to a head,’ Robert Crooks, UK head of indirect
tax at E&Y, said.