Jazztel Plc v The Commissioners for HMRC

Jazztel Plc v The Commissioners for HMRC

Section 320 of the Finance Act 2004 must be disapplied in relation to mistake-based claims for repayment of SDRT paid before 8 September 2003 due to the absence of transitional provisions, in line with EU law and the House of Lords decision in Fleming. However, Jazztel discovered its mistake by 11 January 2000 when it made a formal claim for repayment, so the limitation period expired before the claim was issued, rendering claims for Payments 1 to 22 time-barred.

Parties
Claimant/respondent: Jazztel plc; Defendants/appellants: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
25 February 2022
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
HMRC's appeal against paragraph 3 of the Judge's Order dismissed; appeal against paragraph 4 allowed. Jazztel's claims for Payments 1 to 22 are statute-barred.
Legal Topics
Limitation Periods, Restitution of Unlawfully Levied Tax, Mistake of Law, Transitional Provisions, Effectiveness and Legal Certainty Under EU Law
Tax Law European Union Law Civil Procedure Limitation Periods Restitution of Unlawfully Levied Tax Mistake of Law Transitional Provisions Effectiveness and Legal Certainty Under EU Law

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Parties

Jazztel plc

Claimant/respondent

The Commissioners for Her Majesty's Revenue and Customs

Defendants/appellants

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether section 320 of the Finance Act 2004, which retrospectively curtailed the limitation period for mistake-based restitution claims, is compatible with EU law in the absence of transitional provisions.
  2. 2 Whether Jazztel's claims for repayment of SDRT paid before and after 8 September 2003 are time-barred under the Limitation Act 1980 as amended by section 320.
  3. 3 Whether Jazztel discovered or could with reasonable diligence have discovered its mistake more than six years before issuing its claim.

Ratio Decidendi

Section 320 of the Finance Act 2004 must be disapplied in relation to mistake-based claims for repayment of SDRT paid before 8 September 2003 due to the absence of transitional provisions, in line with EU law and the House of Lords decision in Fleming. However, Jazztel discovered its mistake by 11 January 2000 when it made a formal claim for repayment, so the limitation period expired before the claim was issued, rendering claims for Payments 1 to 22 time-barred.

Court Disposition

HMRC's appeal against paragraph 3 of the Judge's Order dismissed; appeal against paragraph 4 allowed. Jazztel's claims for Payments 1 to 22 are statute-barred.

Orders

  • Section 320 of the Finance Act 2004 disapplied for mistake-based claims for SDRT paid before 8 September 2003.
  • Jazztel's claims for Payments 1 to 22 are dismissed as statute-barred.