Interest on a Tax Refund Case: C-565/11 Mariana Irime

01 April 2013
Author: JHA

By Federico M.A. Cincotta

The CJEU has held that it is unlawful for a national system to limit the interest granted on repayment of tax levied in breach of EU law to the interest accruing from the day following the date of the claim for repayment of the tax as opposed to when the tax was actually paid. The CJEU confirmed its judgment in Littlewoods, stating that where a Member State has levied taxes in breach of the rules of EU law, individuals are entitled to reimbursement not only of the tax unduly levied but also of the amounts paid to that State or retained by it which relate directly to that tax. The CJEU take into consideration the losses constituted by the unavailability of sums of money as a result of a tax being levied prematurely and the duration of the unavailability of the sum unduly levied. This decision affirms the approach in Littlewoods although what the CJEU meant in Littlewoodsremains the subject of ongoing litigation in that case.

This article appears in the JHA April 2013 Tax Newsletter, which also features:

  1. Exit Taxes: Case C-64/11 Commission v Spain by Federico M.A. Cincotta
  2. Recovering unlawful “passed on” VAT: ITC v Commissioners for HMRC, 2nd High Court Judgment by Robert Waterson
  3. Cross Border Group Relief: Marks & Spencer in the Supreme Court by Michael Anderson
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