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EC to refer UK to Court of Justice over tax paid under mistake of law

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The EC has decided to refer the UK to the EU's Court of Justice for ‘abolishing the "remedy for repayment of taxes paid in mistake of law" without proper transitional rules’. EU law requires that reimbursement of taxes levied in breach of EU rules ‘should not be made impossible or excessively difficult’. A retroactive limitation of the rights of taxpayers without proper transitional rules was against that principle, the EC said in a reference to FA 2007 s 107.