§ Mr. PriskTo ask the Chancellor of the Exchequer what assessment his Department has made of the impact on revenue of the European Court of Justice ruling concerning corporation tax for(a) 2004–05, (b) 2005–06, (c) 2006–07 and (d)M 2007–08. [166661]
§ Dawn PrimaroloIf refer the right hon. Gentleman to the answer I gave him on 5 January 2004,Official Report, column 163W.
To date, a total of £212 million has now been paid as a consequence of the judgment of the European Court of Justice in the Hoechst case. Around £110 million of this may be recoverable depending on the outcome of a related court case. Current claims in which repayments have not yet been made are estimated to be in the region of £220 million, of which around £150 million depends on the court case. Any further repayments are subject to the other court decisions and a reliable estimate of the tax potentially repayable is not possible at the present time. But because ACT was abolished in 1999 these cases will not reduce corporation tax receipts for future years.
The Government will also continue the wider-ranging dialogue on international issues that was begun during the August 2003 consultation, with a view to maintaining the competitiveness and fairness of the UK corporation tax regime and ensuring that it remains robust.