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Channel Tunnel owner threatens to take legal action against UK for tax hike

The Channel Tunnel's owner announced on Friday that it would "challenge" the British government by all means possible after its business rates had tripled in the past three years, resulting in a decision to no longer invest in the UK.

Eurotunnel, owned by Getlink of Paris which operates car and lorry trains through the tunnel between England & France.

* Yann Leriche, CEO of the FT, told them that they are facing a rise from PS40million a yearly to PS118million a yearly increase in their rateable value.

* In a press release, the company stated that it had "no justification" for its near-tripling of its business rates over the past three years, which is a property tax.

Leriche, a BBC Radio presenter, said: "We will use all legal options available to us to contest that."

The company said, "At the current level of uncertainty we will not invest in the UK."

Leriche claims that Getlink, between corporate taxation and business rates, will pay 69 cents for every new pound in revenue generated within the UK.

* A number of business and employer groups warned the government that costs are rising and higher taxes would lead to inflation.

Rain Newton-Smith, CEO of the Confederation of British Industry (CBI), said earlier in June that "business is not like a cash faucet which can be opened?without consequences".

The British tax office stated that its methods of valuing properties were well-established and reflected "the specific facts" of each property.

A HMRC (tax office spokesperson) said: "If ratepayers believe their valuation is wrong, they can challenge it, and if necessary, appeal to an independent Valuation Tribunal."

(source: Reuters)