Recent Advocate General Opinions

Cross-Border Loss Relief

On 7 April 2005 Advocate General Poiares Maduro delivered his opinion in the potentially groundbreaking Marks and Spencer case, which is currently before the European Court of Justice (ECJ). The case concerns a claim that under European law non-UK losses incurred by EU subsidiaries of a UK parent company should be eligible for offset against profits of the parent in the UK.

Marks and Spencer argued that the UK group relief rules are in breach of Article 43 (in conjunction with Article 48) of the EC Treaty, which prohibits restrictions on the ability of a national of one Member State to establish in another Member State.

Irish group relief provisions are similar to those in the UK in all material respects so the outcome of the case will have important implications for Irish companies with operations in EU countries and indeed for Irish subsidiaries of EU companies.

Advocate General recommends that the ECJ upholds Marks and Spencer plc cross-border loss relief claims .| read full article |