British American Tobacco (BAT) said on Thursday it could receive around GBP 1.2 billion (EUR 1.85 billion), based on the initial conclusion of a court case against tax authorities.

Cigarette manufacturer BAT said in a statement that the High Court judgment applied the decision from an earlier European Court of Justice (ECJ) ruling, which concluded that dividends received from EU subsidiaries should be, and should have been, exempt from UK taxation. 
The judgment, which was handed down on Thursday, concerns issues of principle. The company said that the tentative conclusion reached in the judgment would produce recovery of about GBP 1.2 billion for them but is subject to a further reference to the ECJ. It also said the judgment may well be subject to appeal which could last up to four years.
BAT was the principal test claimant in the case of a group of companies against the Commissioners for Her Majesty's Revenue and Customs. (ci)