EC hits UK with tax repayment ultimatum

European mandarins have put pressure on the UK to change parts of the 2007
Finance Act relating to the length of time people can claw back money from taxes
levied incorrectly – or face a referral to the courts.

The European Commission said the UK’s policy on reimbursements of tax levied
in breach of EU law should be changed because the repayments only apply for a
six-year period.

The EC is concerned that the limit contravenes the rights of taxpayers
because judgments on whether a levy is unlawful may be handed down after the
six-year period.

“In the absence of a satisfactory response the commission may refer the
United Kingdom to the EU’s Court of Justice,” the EC said in a press statement.

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relief payouts expected after EC move

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