CFC reform is one part of the grand bargain with UK plc over the taxation of foreign profits and from a policy perspective needs to be considered in conjunction with the other parts of that bargain.
However since there is no mechanism to require the provisions to be considered as a whole as a matter of law it seems inevitable that almost any formulation of the CFC provisions will face the threat of being tested in isolation before the Court of Justice in Luxembourg.
The HMRC analysis as outlined in Appendix I invites such a challenge to the extent that it is reflected in the overall policy and the design of...
