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Morrisons is facing a substantial ยฃ17 million tax demand from HMRC, stemming from a dispute over the type of paper bags used for its popular rotisserie chickens.
The supermarket was issued a bill for ยฃ17,034,932 in 2021, with tax authorities asserting that the store-cooked birds are subject to 20 per cent VAT.
This ruling falls under controversial "Pasty Tax" regulations, introduced by David Cameron's Conservative government in 2012.
The high street chain initially believed it had avoided the hot food levy, which sparked widespread public and industry outcry upon its introduction.
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