The European Union's top court will rule tomorrow in a landmark company tax case that may cost EU governments billions of euro in tax refunds and mean gains for dozens of large European firms.
The European Court of Justice will rule on whether British retailer Marks & Spencer can offset losses from subsidiaries in other EU countries against profits at home, just as it would be allowed if the subsidiaries were in Britain.
Marks & Spencer (M&S) wants to reclaim £30 million (€44.5 million) in back taxes, but experts estimate the financial impact of a ruling in its favour could cost European Union governments billions of euro if other EU companies make similar claims.
Britain said M&S could not offset losses from other EU states - a stance that the company said was discriminatory and went against its freedom to do business across the EU.
Scores of other British companies have claimed similar relief and are waiting for the outcome.
EU finance ministers expressed concern over the potential budget impact of the ruling earlier this year, but would not comment yesterday as the court decision could come with various conditions.
Apart from Britain, countries likely to be affected most by the ruling are Germany, France, the Netherlands, Finland, Greece, Ireland and Sweden - all of which submitted comments during the court's proceedings.
Austria, Denmark and Italy already permit the write-offs that M&S is fighting for, according to the European Federation of Accountants.
