Press Release: Direct taxation: European Commission requests UK to ensure reimbursement of taxes paid in violation of EU law

The European Commission has formally requested the United Kingdom to change its Finance Act 2007 to ensure that the period during which taxes levied in breach of EU rules can be reimbursed is proportional to the objectives pursued. Under EU law, the reimbursement of taxes paid in violation of EU rules should be granted according to the national rules on internal tax reimbursements and should not be made impossible or excessively difficult.

A retroactive limitation of the rights of taxpayer in this respect contravenes this principle. The request of the Commission takes the form of a 'reasoned opinion', the second step of an EU infringement procedure. In the absence of a satisfactory response within two months, the Commission may refer the United Kingdom to the EU's Court of Justice.