Deloitte in £400m auto VAT threat

Deloitte in £400m auto VAT threat

Government faces multi-million pound class action to reclaim tax dating back to the 1970s

Deloitte is recruiting automotive industry companies to join a £400m class
action against the government it has emerged.

The Big Four firm will bring the action in the autumn unless the government
bows to claims based on a European Court of Justice ruling in the 1990s that
held some Italian companies were being illegally charged VAT, according to
The
Sunday Telegraph
. Some claims of VAT overpayment could date as far back as
the 1970s.

The claim relates to refunds already made by the government but at a much
lower rate than the companies believe they are entitled to given real inflation
rates.

David Raistrick, Deloitte’s European head of automotive, told The Sunday
Telegraph: ‘If we can’t reach agreement our clients are pushing to obtain the
money by going to court.’

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