On 6 September 2012, the Court of Justice of the European Union (CJEU) released its judgment in the Philips Electronics UK Limited case (C-18/11) in favour of the taxpayer, Roopa Aitken writes.
The case concerned a claim by Philips Electronics a UK company to offset losses of a UK branch (of a Dutch company) against its profits. The claims were made on the basis that the UK loss relief rules are contrary to European law specifically the freedom of establishment enshrined in Article 43EC (now Article 49 Treaty of the Functioning of the European Union). The CJEU which found in favour of the taxpayers on all questions held that broadly there is a restriction on the freedom of establishment for the UK to prevent UK branch losses being...
