It’s an unjust enrichment case from your M&S. For those who have a taste for this kind of thing, this morning brings momentous news. The teacakes litigation is over! Eventually! After more than 13 years! See Marks and Spencer plc (Appellants) v Her Majesty’s Commissioners of Customs and Excise (Respondents) [2009] UKHL 8 (4 February 2009) (also here). The matter had been referred to the ECJ twice, and had returned to the House of Lords after the second reference (earlier stages are: CA, ECJ, CA, HL here and here, ECJ). Lord Walker of Gestingthorpe concluded his speech as follows:
The Court of Justice’s answers to the third and fifth questions did therefore raise the possibility of further issues having to be decided by the national court. But the Commissioners have, after thirteen years of litigation, decided that they do not wish to pursue these matters. The House can therefore dispose of the matter by allowing the appeal from the order dated 21 October 2003 of the Court of Appeal, and inviting submissions as to costs (if necessary) within fourteen days.
Now, the only question is, what kind of teacake do I want with my morning coffee?!
Update: UK Drops ‘Unjust Enrichment’ Defence On VAT Reclaims:
The UK tax authority, HM Revenue and Customs, has announced that, in the light of a recent House of Lords judgment, it will no longer use the ‘unjust enrichment’ defence to argue against value-added tax claims by businesses. HMRC has arrived at this decision after the Lords ruled on February 4 that Marks and Spencer was entitled to a full refund of VAT paid in respect of teacakes sold over a twenty-year period. …
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Here’s an update on media reaction to the story:
BBC News: M&S wins tax battle over teacake
Belfast Telegraph: 13-year legal battle over chocolate teacake settled
Forbes.com: M&S Wins Cookie Battle
International Herald Tribune: UK retailer wins battle over cake tax
The TelegraphM&S wins 13-year dispute with tax man over tea cakes
Times Online: M&S wins VAT fight as taxman throws in the towel and Marks & Spencer tastes victory in tax tussle over teacake
Did M&S really win I wonder as the costs alone could well be the reason the company is in financial trouble
Or perhaps there’s been a drop in sales of teacakes?
Did M&S really win? I am curious too!
[...] law has thrown up some very abstruse issues, none more so that the compatibility of national VAT regimes with European VAT Directives. Where there has been a charge to tax pursuant [...]
Did M&S really win? I am curious too! – I don’t believe it