BusinessCompany NewsECJ FII ruling appears to favour the taxpayer

ECJ FII ruling appears to favour the taxpayer

European Court of Justice says cross-border dividends must be taxed in the same way as national dividends in 'comparable' situations

eu flag

The European Court Justice
appeared to rule in favour of the taxpayer this morning in the
multibillion-pound franked investment income tax case.

The court emphasised that a Member State must treat the payment of dividends
at national and cross-border level in the same way, appearing to favour the
taxpayer, but added that this was only required ‘if the situations are
comparable’.

Experts were still working through the finer details of the ruling, and
although first indications suggested that the case had gone in favour of the FII
taxpayers, which included British American
Tobacco
, there was still concern that the details may have reduced
the sum of tax initially expected to be reclaimed.

The UK Treasury
has been very concerned about the costs of the FII case, which they have
claimed could cost the government anywhere between £7bn and £9bn.

Accountancy Age will continue to follow the opinions of tax experts
through the morning. Keep visiting accountancyage.com for the latest views and
interpretations of the ECJ judgment.

Further reading:

Read the full judgment
here

Treasury steels itself for massive tax hit from ECJ

Treasury faces tax rewrite as European challenges mount

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor