TaxCorporate TaxM&S takes £100m Revenue fight to Europe

M&S takes £100m Revenue fight to Europe

Marks & Spencer will take its landmark £100m tax case with the Inland Revenue to the European Court of Justice on 1 February, Accountancy Age has learned.

Link: Alison Reed steps down as FD at M&S

Marks & Spencer will take its landmark £100m tax case with the Inland Revenue to the European Court of Justice on 1 February, Accountancy Age has learned.

The struggling high-street retailer will argue that it should be able to offset losses of more than £100m, incurred in subsidiaries based in France, Belgium and Germany, against its UK profits.

If it is successful, it will be owed £30m by the Revenue. More than that, an M&S victory should ease hundreds of other company group claims in and around the loss-relief group litigation order (GLO), which comprises some of the world’s largest companies including Asda, Lloyds and BT.

A spokeswoman for M&S, which is still looking for a successor to finance director Alison Reed who steps down early next year, confirmed the case was due to be heard on 1 February.

And in what is a double whammy for the Revenue, a separate GLO against the government was referred to Europe last week by Mr Justice Park.

The so-called thin-cap litigation was referred directly to the ECJ last Thursday and contains some 15 companies, including Pepsi, Volvo and IBM.

The thin-cap case, of which Dorsey & Whitney is the lead and test case solicitor, is one of six GLOs currently at various stages of litigation. Ultimately the thin-cap litigation could cost the government well over £100m, with the overall cost of the GLOs estimated to be in the region of £20bn.

All of the GLOs claim UK tax law is in some way contrary to EC rules.

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