UK Treasury loses £5 billion tax case against BAT
It never rains but it pours for the UK government with news that they have today lost a £5 billion taxation case against which could have serious implications for many more companies. The issue relates to the UK governments treatment of dividend taxation on foreign subsidiaries going back to 1973. In simple terms the UK government had instigated a further tax charge on such income even though it had been taxed at source.
This legal battle has been ongoing for some time as many companies believed the UK governments stand against taxation on dividends was at odds with EU regulations. Today's case was a test case for 20 other companies which are waiting in the wings to have their say in court. The government is sure to appeal against the decision and that could drag on for many more years but the situation is critical and could cost in the region of £5 billion a year for the government.
There are a number of other taxation issues which have hit the headlines of late including the rebate received by Rank Group in relation to its Mecca bingo subsidiary. In normal times these figures would not necessarily make a massive difference to the overall UK budget but with debt set to top £1 trillion another £5 billion would be difficult to find.
Share this..
Related stories
BT increases call costs by 34%
British Telecom has introduced a 34% increase in the cost of daytime telephone calls due to a 17% rise in the charge per minute and an increase in call connection fees. While the vast majority of UK telephone users may not even realise this has happened until their next bill comes in, the company communicated the information in the small print of a letter and company magazine sent to customers ove...
Read MoreRoyal Bank of Scotland insists bonuses will be paid
The Royal Bank of Scotland has today confirmed a loss of £1 billion at the halfway stage for 2009 and sought to clarify the situation regarding staff bonuses. Despite the fact that the bank made a loss in the first half there are many large "guaranteed" bonuses to be paid even though the bank is 70% owned by UK taxpayers and being propped up by the UK government in other ways.
If t...
RBS looks for alternative to government debt insurance scheme
The Royal Bank of Scotland has today suggested it will look for alternatives to the UK government's asset protection scheme in which the bank has agreed to inject £370 billion worth of loans for a fee of £19.5 billion. The idea is that these particular assets will be ring fenced and a line drawn under their potential losses in the short, medium and longer term. However, the £19.5 billion premiu...
Read MorePay as you throw?
Household bins could be fitted with microchips to calculate how much waste hoseholds produce, under new plans for a 'pay as you throw' waste scheme.Different sized rubbish bags or bins that customers pre-pay for were others ideas proposed for the scheme that would see Brit pay for waste collection based on how much rubbish they throw away.Almost two-thirds of people polled by the Local Government...
Read MoreLondon house prices could fall
11/07/2014 House prices in London could be set to fall over the next three months, according to a poll by the Royal Institution of Chartered Surveyors (Rics). The poll found that London surveyors believed house prices were likely to fall in the coming months, with one cause believed to be the recent introduction of tougher mortgage lending rules for borrowers. Rics said that various facto...
Read More