Rail company on track for £6.5m tax refund

Rail company Jarvis has clawed back £6.5m from HM Revenue & Customs. The
rail renewal and on-track machinery giant waged a six-month battle with the
taxman before coming out on top.

‘Jarvis is pleased to announce that it has reached agreement in principle
with HMRC to amended corporation tax returns for the years 2000, 2001 and 2002,
submitted by the company following a change in tax legislation in 2007. The
cumulative impact of these amendments should lead to a repayment of tax and
interest amounting to approximately £6.5m,’ the company said.

Jarvis lobbied the taxman after believing itself eligible for a tax rebate on
the back of a change to the government’s Alternative Finance legislation. The
rule change sought to prevent a situation which could have seen company sales of
‘long-term revenue streams being subjected to double taxation,’ Jarvis said.

The repayment, which is still subject to finalisation by HMRC, is expected to
be received in full by the end of February 2008.