UK corporate tax receipts could plummet after a statement from the European Court of Justice's advocate general suggests parts of UK tax law are illegal, possibly paving the way for greater harmonisation of tax law across the EU.
The Times reports the ECJ statement comes in a case involving retailer Marks & Spencer, which has fought on the issue of offsetting losses from business done outside the UK. The advocate general has stated that provisions banning UK firms from offsetting tax losses from European subsidiaries is illegal. Full ECJ rulings usually fall in the same way as statements made by the advocate general. M&S alone could reclaim some £30m from the Treasury as a result, and would put UK businesses collectively on track to reclaim billions of pounds as well as force the UK closer towards some sort of ...
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