£3.5 million answer to biscuit or cake?
The UK Treasury could be forced to pay £3.5million after claiming that a chocolate teacake was a biscuit.European Court of Justice (ECJ) has ruled the Marks and Spencer treats are actually a cake making the VAT customers payed over the las 20 years unjust.
The money should now be paid back to Marks and Spencer but the UK argue that this would "unjustly enrich" the company as customers had paid the tax.
"This is a very complex judgment on which it would be premature to make any comment until the House of Lords has handed down its judgment," Revenue and Customs said in a statement.
A spokesperson for Marks and Spencer added: "It does look encouraging. However, it is a complex matter and we are reviewing the decision of the ECJ with our advisers."
LINKS
Marks and Spencer
A spokesperson for Marks and Spencer added: "It does look encouraging. However, it is a complex matter and we are reviewing the decision of the ECJ with our advisers."
LINKS
Marks and Spencer
