TaxCorporate TaxM&S given huge boost in £30m tax case

M&S given huge boost in £30m tax case

Advocate General indicates retailer will win landmark tax case.

Marks & Spencer should be allowed to claim relief for losses sustained in other EU countries, an ECJ advocate general opinion has claimed.

Link: Revenue at the European Court of Justice

If the opinion is followed by the full court it could cost the UK government billions of pounds in lost revenue. Luis Maduro ruled that the UK’s system of group relief was ‘incompatible with community law.’

The decision will now be considered by the court, which follows the advocate general’s advice in the vast majority of cases.

M&S is claiming £30m in overpaid tax as a result of what it regards as discriminatory aspects of the UK tax system.

Under the UK tax system, companies can claim relief against corporation tax for losses sustained by UK subisdiaries, but not other subsidiaries within the EU.

‘We are encouraged by the advocate general’s opinion and we await the ECJ decision later this year,’ said an M&S spokeswoman.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

2m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

5m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

8m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

8m 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

8m Alia Shoaib, Reporter