PRAXORAMA #7 - Semaine 18/2025
Cross-border Losses and Freedom of Establishment: the Mark's & Spencer litigation highlights challenges faced by groups seeking tax relief across jurisdictions.
This issue examines the enduring legacy of the Mark's & Spencer case, focusing on the interpretation of EU law regarding the deductibility of final losses within multinational corporate groups. It analyses how the case shaped the application of the principle of freedom of establishment, the evolution of the 'no possibilities test', and its integration in the jurisprudence of the CJEU. The discussion highlights continuing legal uncertainties in cross-border tax treatment of losses, offering insights into implications for legal practitioners and corporate tax planning strategies in multijurisdictional settings.