If a company has existing derivatives that fall within the regulations and has a calendar year end, it must decide to make an election out of the relevant regulation by the 31 March. In recent years the governments of the UK and other EMU countries have lost a string of tax cases. During 2005 a number of cases will be working their way through the UK courts with the aim of referral to the European Court. Treasurers must decide whether the issues being litigated are relevant to them. If so, they must decide whether to join in the litigation.
