Tax ruling may cost Revenue billions
The Inland Revenue may have to shell out billions of pounds in corporation tax rebates after a Court of Appeal decision ruled that a loss relief Group Litigation Order can proceed through the High Court.
The case, first revealed in Accountancy Age in April last year, has frightened the Inland Revenue to such an extent that it tried to scupper the case earlier this year.
It argued, successfully, that the claims should go through special commissioners, and tax returns, and that the cases were not the jurisdiction of the High Court. That decision was overturned by the Court of Appeal today.
Marks & Spencer will appear at the European Court of Justice early next year, in a hope to reclaim £30m. Experts say it is extremely likely to succeed.
If M&S is successful, all 59 members of Class 1 of the loss relief GLO will be set to receive cheques from the Inland Revenue.