Mike Lane explains why the regime may be susceptible to challenge under EU law.
After two decades of seeing domestic UK tax legislation regularly challenged before the CJEU the importance of ensuring that the new CFC regime is EU compliant from the outset is all too clear. So how do the proposed new rules stack up?
The EU law principles
To answer that question it is first necessary to identify what the relevant EU law principles are. The obvious starting point here is the CJEU’s decision in Cadbury-Schweppes (Case C-196/04 [2006] STC 1908). To recap that judgment:
