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