New Judgment: Test Claimants in the Franked Investment Income Group Litigation v Commissioners of Inland Revenue & Anor  UKSC 19
23 Wednesday May 2012
On appeal from:  EWCA Civ 103
The litigation was to determine various questions of law arising from the tax treatment of dividends received by UK-resident companies from non-resident subsidiaries, as compared with the treatment of dividends received from subsidiaries within wholly UK-resident groups of companies. The appellant companies’ argued that the differences between their tax treatment and that of wholly UK-resident groups of companies breached art 43 (freedom of establishment) and article 56 (free movement of capital) of the EC Treaty, and that these breaches have caused them considerable loss.
The Supreme Court was asked to determine the requirements under both EU and domestic law as to the availability of remedies for such breaches of EU law, specifically in relation to limitation periods.