LLOYDS Banking Group faces a billion pounds of a billion pounds after the tax court ruled against it in a conflict linked to losses in Ireland, which dates back about 15 years.
The first -class court tax room refused to resume the lender against HM and Customs revenues that LLOYDS had incorrectly demanded 3.8 billion pounds as a tax relief linked to its Irish operations, which ended after the 2008 financial crisis.
The case stems from the rescue of HBOS by LLOYDS in 2008, a deal organized by the government during banking turmoil. Within two years, the Irish unit at the Bank of Scotland – part of HBOS – was closed after losing heavy real estate loans. Lloyds, led by CEO Charlie Nun, challenged HMRC evaluation a long time ago, which he first revealed in 2012, warning that he might face a $ 1 billion request.
A Lloyds spokesman said the group “does not agree with respect, but mainly on the court’s decision” and will appeal. If additional appeals in the Supreme Court and Supreme Courts fail, Lloyds may eventually pay the full amount required by HMRC.
It is an unwanted setback for the largest local bank in Britain, which is already struggling with another possible financial success – this time in the auto financing department. The group allocated 450 million pounds to cover customer compensation after the Financial Conduct Authority launched a review of poor treatment in the auto loan market. This investigation was intensified in October when the Court of Appeal ruled in a separate case related to the financing of Motunovo and its close brothers, and the lenders may have been subjected to tens of billions of obligations.
The Supreme Court is scheduled to hear an appeal in April, as the government seeks to obtain permission to intervene amid concerns about the possible organizational repercussions. Nun welcomed the participation of the government, because the result can have effects on the industry level on the financing of engines.