Cadbury verdict to spark legal battle

TOP corporate names in Britain are to sue the British revenue for millions following last week’s victory at the European Court of Justice by Cadbury Schweppes.

The European Court ruled investments in low-tax countries were legal provided the companies were legitimate.

Last week’s ruling is said to be worth €22 million to Cadbury Schweppes, which was forced under British tax laws to pay taxes on earnings by its foreign subsidiaries to the British revenue. As a result of the European decision up to 24 firms are seeking the return of tens of millions in taxes from the revenue service in Britain.