That was the view of the liquidator of OHG Accommodation Ltd in his annual progress report, released this month, for creditors of the On Holiday Group, which collapsed in March 2014. At the time, founder Steve Endacott cited HMRC as the reason for its failure.

In documents seen by TTG, OHG liquidator Jonathan Amor of AM Insolvency said claims to HMRC by companies in relation to overpaid Tour Operator Margin Scheme (Toms) VAT had gone – or were expected to go – in the tour operators’ favour.

In May last year Hotels4U launched its bid to reclaim millions of pounds in VAT from the UK’s tax authority, two years after fellow bed bank Medhotels won its £7.1 million VAT case against HMRC.

It is now understood that a total of five companies, aside from OHG, are awaiting tribunal decisions that will decide whether they are due a refund of Toms.

According to one VAT specialist lawyer, once the cases have been determined under UK law there will then be a joint hearing for all five to see whether the issue should be sent to the European Court of Justice.

The Toms specialist told TTG that HMRC viewed this as “a last throw of the dice”.

Amor said: “I understand HMRC could now take the cases to the European Court, however with the uncertainty surrounding Brexit this may not happen, at which point it is likely HMRC will start to settle claims.

“On recent progress, I would like to think this lengthy process will be coming to a resolution within the next 12 months, however I cannot with any certainty say how long it may be until finally resolved.”

Such a move may provide some comfort to creditors of OHG and the failed OTA Lowcosttravelgroup.

OHG Accommodation’s principal asset is a Toms VAT claim of £2.7 million, while Lowcosttravelgroup, which collapsed in July last year, has a claim of around £3 million. Both these sums, if recovered, will be used to pay creditors.

HMRC did not respond to TTG’s request for comment.