03 January 2008
Taxation
tax authorities breached EU law when they refused to refund £3.5m of VAT paid incorrectly by Marks & Spencer (M&S) over 20 years, according to a preliminary opinion from advocate general Juliane Kokott. Marks & Spencer plc v Revenue and Custom Commissioners concerned the legality of the ’s three-year limitation period for recovering incorrectly paid VAT. A final judgment is expected from the European Court of Justice this year, and if it follows the opinion, says Andrew Loan, assistant solicitor at Macfarlanes, it could open the floodgates to claims for repayment of VAT incorrectly paid between 1973 and 2005.
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