EU tax ruling could cost member states billions of euros

A preliminary ruling by the EU Court of Justice allows international companies to reclaim considerable sums of money in tax from national governments.

The ruling, based on a case filed by the UK retailer Marks & Spencer, was suggested by the Court's advocate general and is likely to be confirmed by the end of the year.

It states that a British law barring M&S from offsetting tax losses made by subsidiaries in Germany, Belgium and France against its profits in the UK violated Europ...