Brussels, 14/11/2012 (Agence Europe) - Through a decision made on 13 November (C-35-11), the European Court of Justice has ruled against a form of British corporation tax. It has indicated that the method for taxing dividends from abroad does not guarantee equal fiscal treatment for dividends generated nationally and which are not subject to this kind of corporation tax (exemption method). Generally, these two methods can be considered as being equivalent but in the British case, this equivalence could be compromised, according to the ECJ. In the case of dividends generated nationally, they are exempt from corporation tax with regard to the beneficiary company, irrespective of the tax paid by the distributor company. Nonetheless, in dividends from abroad, the tax credit beneficiary companies enjoy from these dividends through the application of the method for applying the tax is determined by taking into account the effective tax on profits in the country of origin. This leads to an additional tax for the resident beneficiary company if the level of effective taxation on the profits of the distribution company for these dividends does not reach the nominal tax rates to which the beneficiary company of these dividends is subject. Contrary to the exemption methods, this method of taxation does not subsequently allow for the transmission to the quoted company benefits from the upstream reductions in corporation tax to the company distributing the dividends. (FG/transl.fl)