Dorsey's London Office Wins Landmark Case in Europe

The European Court of Justice today handed down a "landmark" ruling in favor of Dorsey client, Marks & Spencer, a large UK retailer.

The ECJ ruled that Marks & Spencer’s European Community rights override UK tax law. Specifically, the ECJ ruled that it is illegal for the UK to prohibit offsetting losses Marks & Spencer subsidiaries incurred on the Continent against profits Marks & Spencer made in the UK, unless those losses are otherwise recoverable in the country where they were incurred. The UK tax law, the ECJ ruled, would act as an impediment to freedoms of movement and establishment across the European Community and, therefore, it is incompatible with the European Union treaty.

Simon Whitehead and Alison Last of Dorsey’s London office have served as the lawyers for Marks & Spencer on the case in both the English courts and the European Court of Justice.

The ECJ decision is being widely reported in the British, European, and international press. Examples of published articles appear below:

• Financial Times, "EU backs M&S in Landmark Tax Case"
• The Daily Telegraph, "Court Rules in Favor of M&S"
• The Guardian, "M&S Win Forces Treasury's Hand"
• The Times, "M&S Wins Landmark Tax Case"
• The Independent, "Landmark Ruling Forces the Treasury to Change Company Tax Law"
• The Lawyer, "Dorsey Wins Landmark M&S Tax Case"