Cross-border group loss relief: CJEU refuses to extend Marks and Spencer principle

In case C-405/18 Aures Holdings, the CJEU refused to extend the (limited) entitlement to cross-border group loss relief provided for in case C-446/03 Marks & Spencer to a further category of taxpayer. The applicant had sought to deduct historic losses against tax liabilities for the current year in one Member State, even though those losses had occurred in another Member State and in a different accounting period when the parent company had not even been tax resident in its current Member State.

Brendan McGurk successfully intervened on behalf of the United Kingdom Government.

The judgment is here and a detailed case note by Alfred Artley is here.