Zend certified PHP/Magento developer

Can Magento calculate taxes on a product that was imported with tax included in price

Products have been imported with VAT.

On each product, the Tax Class is set to "Taxable Goods"

In System > Configuration > Sales > Tax > Calculation Settings > Catalog Prices = "Including Tax"

An example product has the price of 229.95 set on it. This is inclusive of VAT but in the listing & product page it shows as 275.94.

Clearly I’ve configured something wrong – how can I get the system to understand that the total price, including VAT is actually 229.95 and not 275.94.

Is it possible for Magento to decipher a tax amount on a product where the product has been imported with VAT included.