The European Court ruled investments in low-tax countries were legal provided the companies were legitimate.
Last week’s ruling is said to be worth €22 million to Cadbury Schweppes, which was forced under British tax laws to pay taxes on earnings by its foreign subsidiaries to the British revenue. As a result of the European decision up to 24 firms are seeking the return of tens of millions in taxes from the revenue service in Britain.
The double tax system was imposed under the controlled foreign company legislation (CFC) applied since 2002.
Companies pursuing British revenue and customs include J Sainsbury, Royal & Sun Alliance and Scottish & Newcastle, owners of Beamish & Crawford.