The ECJ ruling confirmed that a parent company that invests in a foreign subsidiary cannot be treated less favourably than one that invests in a domestic subsidiary.
The principles of the case are very similar to the Marks & Spencer loss relief case, which Accountancy Age exclusively revealed last November.
‘We have definitely been watching the case with interest,’ a spokeswoman for M&S said this week. ‘We do see a lot of similarities.’
The M&S case is due to be heard by the ECJ in late 2004. Should it win – which seems almost certain – a group litigation order involving more than 40 companies may prevail too.
Anton Hume, international tax partner at Grant Thornton, said that the Bosal case was ‘arguably the most important ECJ case we have seen for a decade’.
A statement issued by the Inland Revenue claimed that the UK did not have any legislation similar to the Dutch legislation considered by the ECJ in this case.
‘However, we will be studying the judgment to determine whether there are any wider implications of the decision,’ it said.
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Government's estimate of a £400m admin saving from Making Tax Digital is way off - and is instead a huge cost burden, warns Lamont Pridmore chief executive Graham Lamont
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year