.png)
.png)
Following the Italian Republic case, motor dealers made significant claims for VAT refunds going back to 1973. Details can be seen in Customs' manuals at Volume V1-13, Section 21. This is still giving rise to litigation from a VAT perspective (see W R Davies 19374 and Bristol Street 19398).
Following the Italian Republic case motor dealers made significant claims for VAT refunds going back to 1973. Details can be seen in Customs' manuals at Volume V1-13 Section 21. This is still giving rise to litigation from a VAT perspective (see W R Davies 19374 and Bristol Street 19398).
As the claims cover a large number of years the interest paid with the refunds is substantial. According to Customs the interest is paid under VATA 1994 s 78 ('Interest in certain cases of official error'). It is rumoured that some advisers believe that this interest should not be subject to income or corporation tax as far as the motor dealer is concerned. HMRC considers that it is taxable (see Business Income Manual at BIM 31610).
As far as income tax is concerned interest is taxable under ITTOIA 2005 s 369 and there would surely...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
