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.’