The High Court has concluded in the VIC GLO that there is a general entitlement to compound interest in Community law claims. Clients with potential claims (either VAT or direct tax) for the recovery of tax with compound interest may well wish to consider issuing protective claims now to avoid the same trap as the test claimants in that case whose claims were found in any event to be out of time. Legislation is also intended to restrict rights and time limits to seek the recovery of overpaid tax starting in July 2009.