This year the British high-street retailer Marks & Spencer will may win a case at the European Court of Justice concerning tax issues. Winning the case could result in tax reforms for the majority of European countries. Current UK law states that tax losses from overseas subsidiaries may not be offset by UK profits. M&S argues that this goes against EU law.
“We are pleased the case was sent by the High Court to the Court of Justice. We await the court’s decision, which we expect to be made later this year,” said an M&S spokesperson. The European Federation of Accountants believe that, in case of a victory, this case may result in European countries facing large claims of tax relief on losses suffered in the past.