XEROX LIMITED v Revenue & Customs (Interest payments - customs duty) [2022] UKFTT 92 (TC) (10 March 2022)

XEROX LIMITED v Revenue & Customs (Interest payments - customs duty) [2022] UKFTT 92 (TC) (10 March 2022)

Article 241 applies to Xerox’s claim as it is an 'ordinary situation' involving a retrospective correction of the customs code. The Second Exception in Article 241 is satisfied by s 127 FA 1999, triggering the requirement to pay interest at a rate equivalent to the national money or financial market rate. The...

Source-derived case information.

Citation
[2022] UKFTT 92
Parties
Appellant: Xerox Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
10 March 2022
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
Customs Duty, Interest on Repayments, Interpretation of EU Law, Interaction of EU and Domestic Law
Tax Law European Union Law Customs Duty Interest on Repayments Interpretation of EU Law Interaction of EU and Domestic Law

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Parties

Xerox Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether Xerox is entitled to additional interest on repayment of customs duties under Article 241 of the Community Customs Code, overriding UK statutory interest rates
  2. 2 Whether the Tribunal has jurisdiction to award such interest

Ratio Decidendi

Article 241 applies to Xerox’s claim as it is an 'ordinary situation' involving a retrospective correction of the customs code. The Second Exception in Article 241 is satisfied by s 127 FA 1999, triggering the requirement to pay interest at a rate equivalent to the national money or financial market rate. The statutory rate paid by HMRC does not meet this requirement. The Tribunal has jurisdiction to determine the appropriate rate and award additional interest accordingly.

Court Disposition

Appeal allowed

Orders

  • HMRC to pay Xerox additional interest, taking account of statutory interest already paid, at the relevant Bank of England base rate from the date of Xerox’s claim to the date of repayment of overpaid customs duty.