NTL to gain €3m on lower VAT rate

A recent Supreme Court ruling in favour of cable firm NTL Ireland relating to the amount of VAT it should pay on connection fees will mean an approximate €3m extra in the company's profit and loss account for year end December 2003.

The cable company is expected to move into the black this year.

Late last year, the court ruled that NTL Ireland should pay VAT rates on connection fees at a rate of 13.5%, as opposed to the 21% proposed by the Revenue.

Revenue's decision to charge VAT at 21% was originally challenged in 1989 by Cablelink, before NTL took the case over.

Revenue appealed the decision to the Supreme Court after NTL won its case in the Appeal Commissioners and in the High Court.NTL had not been passing on the 21% rate to customers so they are not eligible for compensation.