The right remedies

MOST TAX PRACTITIONERS and managers know what steps to take when a corporation whether small or large has mistakenly underpaid tax in any given year. The answer is less clear where as a result of a provision which had been found to be in breach of community law a company has overpaid tax or has suffered expenses which it would not have incurred otherwise.
The answers may lie with the European Court of Justice. In his opinion of 6 April 2006 in the Franked Investment Income Group Litigation Order the Advocate General gave an important and detailed explanation of potential remedies which may be available to taxpayers where excessive tax had been paid or pecuniary loss suffered as a consequence of provisions which had been found to be in breach of the EC Treaty. Although the European Court of Justice is not bound to...