The decision means that companies such as Bond House, Optigen and Fulcrum, along with dozens of other businesses waiting in the wings, could be due rebates totalling hundreds of millions of pounds.
Dragon Futures, a physical commoditites trader, told Accountancy Age that Customs’ previous stance had left it out of pocket to the tune of £16.5m and forced it to withdraw from the UK, never to return.
Don Mavin, director of the VAT investigations team at accountancy firm, Chiltern, said said the preliminary judgement would give Customs ‘an extremely strong hint’ that the way to tackle carousel fraud is to go after the fraudsters.
‘Today’s decision is excellent news for many businesses who have been inadvertently caught up in this overly aggressive campaign by Customs,’ said Mavin.
‘We have been acting for a number of clients who have been struggling financially, as Customs has withheld VAT owing for over two years now.ÿWe sincerely hope that the European Court will endorse this opinion and see that these innocent parties are refunded what is rightfully owed.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states