The EU effect

A group litigation order was made following the judgment of the European Court of Justice in Hoechst v Attorney-General Metallgesellschaft v Attorney-General C-397/98 and C-410/98) [2001] STC 452 in which the court held that it was contrary to Article 43 (formerly Article 52) of the EC

Treaty for the UK and other member states to refuse companies to make group income elections under TA 1988 s 247(1) in respect of companies' EU-wide subsidiaries.

In that litigation the issue aroseas to the effect if any that the receipt by a foreign parent company of a tax credit should have on the compensation to which its UK subsidiary was entitled.

The instant appeal concerned Pirelli Cable and Pirelli Tyre both resident in the Netherlands and Pirelli SpA which was resident in Italy. Pirelli UK plc and Pirelli General plc were resident in the UK.

The...