As Sara Luder explains, the UK is not alone in its struggle to craft an EU compliant CFC regime.
Mike Lane’s article titled ‘CFC reform and the EU’ (Tax Journal dated 2 March 2012) discussed whether or not the new CFC regime was EU compliant. In particular Mike looked at the UK government’s view of EU law and concluded that this was not justified but instead concluded that the 2006 decision of the CJEU in the Cadbury Schweppes case
(C-196/04 [2006] STC 1908) is the relevant test which requires that any CFC regime is only EU compliant if it is restricted to ‘wholly artificial arrangements’.
The draft legislation has moved on since Mike wrote his article so...
