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.
Link: M&S given huge boost in £30m tax case
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.