It is unusual for the exotic world of tax litigation to hit the evening news, but the media coverage of the Marks & Spencer case that was heard on 1 February, and its reference by the High Court to the European Court of Justice (ECJ) shows that something unusual is afoot.
The reason for the attention is the scale of the attack now being directed at taxation systems across the European Community. In addition to Marks & Spencer (M&S) itself, there are a large number of multi-nationals lining up that have lodged claims on the basis that M&S will win. Meanwhile, a series of references to the ECJ concerning other aspects of the tax systems of member states are due to be heard shortly after the M&S reference. No one knows for sure, but some estimates put the amount of tax at stake in all these appeals at as much as £20bn. These other appeals have strong arguments in their support, but what happens to M&S will represent a statement of intent by the ECJ.
