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The European Commission is to refer the UK to the European Court of Justice for abolishing the law concerning the remedy for repayment of taxes paid in mistake, without proper transitional rules.
Under European Union legislation, taxes that must be reimbursed when they have been levied in breach of EU rules should be repaid according to the national regulations on internal tax reimbursements.
The UK retroactively abolished one of the remedies used by taxpayers seeking reimbursement of taxes paid in breach of EU law. No proper transitional rules were provided, except in certain limited circumstances.
As a result, it became almost impossible in certain cases to exercise the rights conferred by EU law.
The EC first asked the UK to comply with the EU law in September 2010, but the country refused.
