BAT Could Get 1.2 Billion Pounds of Taxes Back

Source from:  Associated Press 11/28/2008

LONDON - British American Tobacco PLC said it stands to get 1.2 billion pounds ($1.8 billion) worth of overpaid taxes back after a high court ruling in the company's favor on Thursday. Europe's largest cigarette maker said a high court judge had preliminarily ruled that the company should have been exempt from British taxation on dividends received from European subsidiaries. It said the judge found that Britain's tax authority should refund the taxes paid on those dividends, as well as several other overpaid tax bills. "The tentative conclusion reached in the judgment would produce recovery of about 1.2 billion pounds," the cigarette maker said in a statement. However, it noted that the judgment was subject to a possible appeal by the British tax authority, which would have the right to bring the case before the European Court of Justice or to the British Court of Appeal. This process could take three to four years, the company said. The British Treasury, which is handling the case on behalf of the tax authority, declined to comment on whether it would be appealing the case. "We will need to consider the specific points in this judgment in some detail before responding further," the Treasury said in a statement. BAT shares were 3 percent lower at 1,679 pence. Enditem