You know who continually tells us that we must pay taxes according to the spirit of the law, not the letter.
Treasury and tax officials are in urgent talks to try and limit the damage caused by a VAT ruling that threatens to result in companies making fresh claims for millions of pounds in rebates on bad debts.
But what happens when it appears that what HMRC thinks is the spirit of the law is actually contrary to the letter of said law? And a tax tribunal agrees that HMRC\’s interpretation is in fact in breach of EU law (quite possibly in spirit as well as letter)?
Should everyone just cough up as Parliament apparently intended or not cough up as they and the EU wrote?
Quite, the answer is that the letter of the law is paramount as the tax tribunal has agreed. And that\’s how it has to be for how can there be any clarity at all without such a position?