R.B
JF-Expert Member
- May 10, 2012
- 6,296
- 2,575
EUROPE is undermining British tax rules and ordering the Government to pay back BILLIONS of pounds to huge multinational companies in a shocking show of Brussels dominance over the UK.
Europe is ordering Britain to pay back money to huge companies
As the country prepares to go to the polls on its EU membership in June, corporate giants will be arguing exactly how much is owed to them as decade-long legal battles come to a climax.
Unbeknown to most Britons, huge firms have applied to the European Court of Justice (ECJ) to contest their tax payments in the last 10 years - and many have already won.
Losing every fight could cost the country £43billion - equivalent to the UK's corporation tax revenue for an entire year.
The firms are arguing tax payments dating back to when Britain joined the Common Market in 1973 were too high and they should be reimbursed.
In the most extraordinary case, HMRC handed £620million to British American Tobacco (BAT) after the ECJ ruled it taxed the company too heavily for more than 26 years.
Last month, insurer Prudential and engineering firm Invensys, won a case in the High Court in London entitling them to £207m in payouts.
Invensys will get £117m ,while Prudential has been awarded £61m.
Britain is powerless to control it’s own purse strings, unless we vote Brexit in June
Former Labour trade minister Dr Nigel Griffiths
These bills could yet double if interest is added and as Britons vote in the EU referendum in June, companies will be back in the courtroom to hear a decision on whether the amount being given to them will increase.
Dozens more firms have fought HMRC over their contributions, including Marks & Spencer and Ford.
Politicians in the Labour GO movement, a pro-leave group, have argued this is another example of why Britain must vote for a Brexit.
Labour GO Head of Strategy and former Labour trade minister Dr Nigel Griffiths, said: “The right-wing EU is robbing money from the UK’s public purse and handing it to multi-nationals including Big Tobacco.
“And Britain is powerless to control it’s own purse strings, unless we vote Brexit in June.
“Ironically, around the same time in June that 24 companies including British American Tobacco and Prudential work out the level of their tax payback thanks to a ruling by the ECJ, Britain will be at the polls and have the option to vote to Leave Europe and stop this shambolic situation ever happening again."
GETTY
Companies are applying to ECJ for tax repayments from the UK
British American Tobacco’s case focused on whether the UK charged it too much tax on dividends from European subsidiaries.
According to BAT this difference means the UK had erected a barrier to European trade in contravention of the principles of the single market.
Pension schemes are bringing similar cases over taxes paid on dividends. The BT Pension scheme hopes to recover £124m, while Marks & Spencer received £18m from the taxman in 2014 in a case focused on offsetting European losses against UK tax bills.
GETTY
Kate Hoey has said Britain is losing power over its own pursestrings
Labour GO Founder and Vauxhall MP Kate Hoey says: “The EU has a long history of assisting tax evasion.
"Jean-Claude Juncker, the current president of the European Commission, organised sweetheart deals for big multinationals in his previous job, which was only possible due to EU connivance.
“The European Council is dominated by right wingers who hold 19 out of the 30 positions.
“The biggest group in the European Parliament is the Conservative EPP, who also hold the position of Presidents of European Commission and Council.”
Dr Griffiths added: “It’s all rhetoric from Cameron that his Government are tough on taxes - they can’t be while the UK remains part of Europe.
“His tough stance on tax before the election was pure PR spin.”
Europe is ordering Britain to pay back money to huge companies
As the country prepares to go to the polls on its EU membership in June, corporate giants will be arguing exactly how much is owed to them as decade-long legal battles come to a climax.
Unbeknown to most Britons, huge firms have applied to the European Court of Justice (ECJ) to contest their tax payments in the last 10 years - and many have already won.
Losing every fight could cost the country £43billion - equivalent to the UK's corporation tax revenue for an entire year.
The firms are arguing tax payments dating back to when Britain joined the Common Market in 1973 were too high and they should be reimbursed.
In the most extraordinary case, HMRC handed £620million to British American Tobacco (BAT) after the ECJ ruled it taxed the company too heavily for more than 26 years.
Last month, insurer Prudential and engineering firm Invensys, won a case in the High Court in London entitling them to £207m in payouts.
Invensys will get £117m ,while Prudential has been awarded £61m.
Britain is powerless to control it’s own purse strings, unless we vote Brexit in June
Former Labour trade minister Dr Nigel Griffiths
These bills could yet double if interest is added and as Britons vote in the EU referendum in June, companies will be back in the courtroom to hear a decision on whether the amount being given to them will increase.
Dozens more firms have fought HMRC over their contributions, including Marks & Spencer and Ford.
Politicians in the Labour GO movement, a pro-leave group, have argued this is another example of why Britain must vote for a Brexit.
Labour GO Head of Strategy and former Labour trade minister Dr Nigel Griffiths, said: “The right-wing EU is robbing money from the UK’s public purse and handing it to multi-nationals including Big Tobacco.
“And Britain is powerless to control it’s own purse strings, unless we vote Brexit in June.
“Ironically, around the same time in June that 24 companies including British American Tobacco and Prudential work out the level of their tax payback thanks to a ruling by the ECJ, Britain will be at the polls and have the option to vote to Leave Europe and stop this shambolic situation ever happening again."
GETTY
Companies are applying to ECJ for tax repayments from the UK
British American Tobacco’s case focused on whether the UK charged it too much tax on dividends from European subsidiaries.
According to BAT this difference means the UK had erected a barrier to European trade in contravention of the principles of the single market.
Pension schemes are bringing similar cases over taxes paid on dividends. The BT Pension scheme hopes to recover £124m, while Marks & Spencer received £18m from the taxman in 2014 in a case focused on offsetting European losses against UK tax bills.
GETTY
Kate Hoey has said Britain is losing power over its own pursestrings
Labour GO Founder and Vauxhall MP Kate Hoey says: “The EU has a long history of assisting tax evasion.
"Jean-Claude Juncker, the current president of the European Commission, organised sweetheart deals for big multinationals in his previous job, which was only possible due to EU connivance.
“The European Council is dominated by right wingers who hold 19 out of the 30 positions.
“The biggest group in the European Parliament is the Conservative EPP, who also hold the position of Presidents of European Commission and Council.”
Dr Griffiths added: “It’s all rhetoric from Cameron that his Government are tough on taxes - they can’t be while the UK remains part of Europe.
“His tough stance on tax before the election was pure PR spin.”
