ECJ FII ruling appears to favour the taxpayer

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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

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
, 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 for the latest views and
interpretations of the ECJ judgment.

Further reading:

Read the full judgment

Treasury steels itself for massive tax hit from ECJ

Treasury faces tax rewrite as European challenges mount

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