Caffyns Regulatory News (CFYN)

20 Mar 2007 15:40

Caffyns PLC20 March 2007 Caffyns plc - VAT Claim Caffyns plc ("the Company") announces that it has today received £2.978m from HMRevenue & Customs ("HMRC") in respect of a claim made as a result of the Marks &Spencer European Court case, relating to VAT overpaid on demonstrator vehiclebonuses in the period 1973 to 1997. The amount received comprises the claim of£1.378m and interest of £1.6m. This claim had previously not been paid pendingclarification on a point of law which has still not yet been resolved. WhileHMRC has decided to pay the Company's claim at this stage, HMRC is appealing tothe House of Lords against two decisions made during 2006 in cases concerningother businesses unrelated to the Company. This appeal is scheduled to be heardin the House of Lords in the last quarter of 2007. The decision following thisappeal may determine whether the Company will be required to repay £2.978m, plusinterest calculated from today. Due to the uncertainty relating to the retention by the Company of the moniesreceived, a provision for the repayment to HMRC of £2.978m will be incorporatedin the Company's balance sheet pending resolution of the legal issues.Consequently, there will not be a benefit to the Company's Income Statementuntil the matter has been resolved. In the meantime, the cash received from the claim will be used to reduce theCompany's borrowings. Enquiries: Simon CaffynChief Executive Mark HarrisonFinance Director Telephone: 01323 730201 20 March 2007 This information is provided by RNS The company news service from the London Stock Exchange