This feed is published daily with selected new or updated
content from across the Lowtax Network. For a list of Lowtax Network
sites, many of which feature daily news, see
below.
Providing essential tax news and information
for globally mobile artists, contractors, entrepreneurs, professionals,
small businesses, sportspersons and entertainers.
Lowtax Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Investors Offshore:
The independent offshore and alternative investment guide for expatriates
and the globally aware investor.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
HMRC Can't Have Its (Tea)Cake And Eat It, Says EU Court Advisor,
by Ulrika Lomas, Tax-News.com, Brussels
Tuesday, December 18, 2007
An Advocate General to the European Court of Justice has sided with UK retailer
Marks and Spencer in its battle to have overpaid VAT on the sale of teacakes
refunded by the UK tax department.
What should have been a storm in a teacup, the legal battle between M&S
and the UK customs authorities has dragged on for several years and gone to
the highest court in the UK, and from there to the European Union's top court.
The dispute centres on the classification of certain foodstuffs for VAT purposes
- often a source of conflict between retailers and the government in the UK
(who can forget the furore over the classification of 'Jaffa Cakes'?). Generally,
the supply of food is zero-rated in the UK for VAT purposes. However, confectionery
is an exception to this rule, and chocolate covered biscuits are considered
to be confectionery in such cases, and therefore face standard rate VAT.
Marks & Spencer, following these rules, accounted for VAT in their sale
of the teacakes. But in 1994, the UK tax authority suggested that the product
had been mis-classified, and should have been deemed a cake, therefore qualifying
for the zero VAT rate.
The retailer has thus far been unable to prove that it is entitled to a GBP3.5
million refund (based on sales of the teacakes from 1973), and has received
only GBP88,440 from Customs, which argues that the majority of the additional
cost stemming from the VAT has been passed on to consumers. However, in a decision
issued last week, Advocate General Juliane Kokott concluded that the claim did
not constitute unjust enrichment, as claimed by the UK government.
"The objection that Marks & Spencer has been enriched cannot be invoked
as long as it offends the principle of equal treatment," Kokott's ruling
stated.
Decisions by Advocates General are not binding on the European Court, but tend
to be taken up in the most cases.
The ECJ's final ruling is expected to be handed back to the UK's House of Lords
next year.
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
Advertising & Marketing
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising,
sponsorship and marketing opportunities:
Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Could your corporate web-site or newsletter benefit
from incorporating regularly updated news and content
tailored to serve your clients' interests? We can provide
a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
Click here for a brief introduction
to RSS and instructions on how to get the Tax-News feed.
IMPORTANT NOTICE: THE LOWTAX NETWORK has
taken reasonable care in sourcing and presenting the information contained on
this site, but accepts no responsibility for any financial or other loss or damage
that may result from its use. In particular, users of the site are advised to
take appropriate professional advice before committing themselves to involvement
in offshore jurisdictions, offshore trusts or offshore investments. All materials
on this site copyright THE LOWTAX NETWORK 1999 to 2010. Contact
us for further information.
TAX-NEWS.COM
Free Tax-News Feed