By Jo Best, 6 October 2004 12:35
NEWS Things are looking up for the UK's mobile operators – they could be about to get £3.35bn back from the taxman if they're found to have paid too much for their 3G licences.
The case centres around whether the prices that the operators bought their 3G licences included VAT. When the licences were auctioned off in 2002, it was assumed they didn't – leaving operators to pay an additional 17.5 per cent on top.
The five main operators who bought licences worth some £22.5bn in total have taken their case to court in the hope of seeing that VAT bill cancelled and the money returned.
Things might be going their way - according to the Financial Times, the case has been referred to the European Court of Justice in Luxembourg. Court documents seen by the paper show the case hinges on the whether the licence auction meant the government was undertaking economic activity.
If the court decides it did, Whitehall could be forced to issue a multi-billion-pound rebate to the operators.
Should the decision favour the operators, its knock-on effect would prove unpopular across Europe, where the continent's governments have raked in over €1bn from selling third-generation licences.
Comments
There are 3 comments. Join the discussion
1. Richard
Does this mean... we'll be getting lower bills, better coverage and competent customer service then? Great! We've waited long enough.
Do you suppose they will drop the 2000% mark-up on text messaging, too?
2. anonymous
Let them have the Tax back they might be a bit kinder to their customers then, ever since they auctioneed off those 3G licences the mobie operators have needed to squeeze more cash out of their customers.
But then why would i think the Government would care, they are happy to see the water companies struggle, who have also had to squeeze more money out of their customers.
When are we going to get shot of this muppet government.
3. anonymous
I think 3 should pay everyone's VAT with the diabolical service they try to provide!