European committee for M&S case implications
Implications of landmark tax case of huge concern to finance ministers
A high-level committee of tax experts to look into the likely implications of the infamous Marks & Spencer European group relief case has been called by German finance minister, Hans Eichel.
The committee will look at contingency plans for European governments in case the European Court of Justice sides with the retailer, as widely expected.
A decision on the £30m case is expected later this year, after M&S argued that it should be allowed to offset losses incurred in foreign subsidiaries against profits made in the UK. An ECJ advocate general sided with M&S earlier this year, and the case is seen as a test case for hundreds of other multi-national groups with similar claims.
Eichel’s proposal was made over lunch at the Ecofin meeting of Europe’s finance ministers, reports the Financial Times. Germany faces the prospect of a massive euro 30bn refund if M&S were to win the case.