On 19 April 2012, Advocate General Kokott (AG) released her opinion in the case of Philips Electronics UK Ltd case (C-18/11). The case concerns a UK company’s claims to offset losses of a UK branch of a Dutch company against its profits on the basis that the UK group and consortium relief rules are contrary to European law. The AG’s opinion is in favour of the taxpayer on all questions, including the conclusion that ICTA 1988 s 403D(1)(c) constitutes a restriction on the freedom of establishment which could not be justified. It seems likely that the decision of the CJEU, expected in three to six months, will not deviate from the AG’s opinion.