Caffyns PLC
20 March 2007
Caffyns plc - VAT Claim
Caffyns plc ("the Company") announces that it has today received £2.978m from HM
Revenue & Customs ("HMRC") in respect of a claim made as a result of the Marks &
Spencer European Court case, relating to VAT overpaid on demonstrator vehicle
bonuses in the period 1973 to 1997. The amount received comprises the claim of
£1.378m and interest of £1.6m. This claim had previously not been paid pending
clarification on a point of law which has still not yet been resolved. While
HMRC has decided to pay the Company's claim at this stage, HMRC is appealing to
the House of Lords against two decisions made during 2006 in cases concerning
other businesses unrelated to the Company. This appeal is scheduled to be heard
in the House of Lords in the last quarter of 2007. The decision following this
appeal may determine whether the Company will be required to repay £2.978m, plus
interest calculated from today.
Due to the uncertainty relating to the retention by the Company of the monies
received, a provision for the repayment to HMRC of £2.978m will be incorporated
in the Company's balance sheet pending resolution of the legal issues.
Consequently, there will not be a benefit to the Company's Income Statement
until the matter has been resolved.
In the meantime, the cash received from the claim will be used to reduce the
Company's borrowings.
Enquiries:
Simon Caffyn
Chief Executive
Mark Harrison
Finance Director
Telephone: 01323 730201
20 March 2007
This information is provided by RNS
The company news service from the London Stock Exchange
20 March 2007
Caffyns plc - VAT Claim
Caffyns plc ("the Company") announces that it has today received £2.978m from HM
Revenue & Customs ("HMRC") in respect of a claim made as a result of the Marks &
Spencer European Court case, relating to VAT overpaid on demonstrator vehicle
bonuses in the period 1973 to 1997. The amount received comprises the claim of
£1.378m and interest of £1.6m. This claim had previously not been paid pending
clarification on a point of law which has still not yet been resolved. While
HMRC has decided to pay the Company's claim at this stage, HMRC is appealing to
the House of Lords against two decisions made during 2006 in cases concerning
other businesses unrelated to the Company. This appeal is scheduled to be heard
in the House of Lords in the last quarter of 2007. The decision following this
appeal may determine whether the Company will be required to repay £2.978m, plus
interest calculated from today.
Due to the uncertainty relating to the retention by the Company of the monies
received, a provision for the repayment to HMRC of £2.978m will be incorporated
in the Company's balance sheet pending resolution of the legal issues.
Consequently, there will not be a benefit to the Company's Income Statement
until the matter has been resolved.
In the meantime, the cash received from the claim will be used to reduce the
Company's borrowings.
Enquiries:
Simon Caffyn
Chief Executive
Mark Harrison
Finance Director
Telephone: 01323 730201
20 March 2007
This information is provided by RNS
The company news service from the London Stock Exchange