TaxCorporate TaxECJ tide flows in governments’ favour again

ECJ tide flows in governments' favour again

Advocate general decision on ACT Class IV sees decisive rejection of companies arguments on tax credits

Companies seeking to reclaim tax credits in the advanced corporation tax
class IV case have had their claims decisively rejected by an opinion of the
European court.

In a wide-ranging opinion, which will not necessarily be final until the
court gives its view, advocate general Leendeert Geelhoed suggested that
companies need not receive ‘equal’ treatment in the case, only ‘fair’ treatment.

Geelhoed, who observers have noted could have a crucial impact in several of
the group litigation order cases going through the ECJ, said that this was an
area ‘where predictability and legal certainty are crucially important, so that
member states can plan their budget and design their corporate tax systems on
the basis of relatively reliable revenue predictions.’

Bill Dodwell, tax partner at Deloitte, said: ‘This is another welcome opinion
for EU governments. It follows the trend over the last year, where few claimants
have succeeded winning large tax refunds. This opinion was largely expected
…… The claimants’ argument that full tax credits were due was breathtakingly
optimistic.’

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

2m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

2m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson