Court ruling on whisky tax hits distillers
25 Aug 05
Scotch Whisky Association looking into implications of Court of Session tax ruling
The Scotch Whisky Association has said it will be closely studying the implications of a Court of Session ruling which could result in increased tax charges for distillers.
The increase could amount to £25 million to £30 million over the next five to 10 years. The ruling applies to tax that must be paid on depreciated stock each year, rather than when the product is sold. By law, whisky companies must keep their products for at least three years before selling.
William Grant and Sons, who claim that the tax would damage the whisky industry, won a case before the Special Commissioners in 2004 against the Revenue. However the Revenue appealed against the decision and Lords Penrose, Osborne and Reed this week ruled in the department's favour.
A spokesman for the Association said it would be looking to see if there were grounds to appeal to the House of Lords. However, any appeal would need to be brought by William Grant and Sons as the party with a direct financial interest.