David Harkness and Robert Sharpe explore potential areas of deficiency in the new CFC rules and their interaction with the Banking Code.
Previous Tax Journal articles have suggested that the new CFC regime is not fully compliant with EU law. This article explores potential areas of deficiency in the new rules and considers how the new rules interact with the Banking Code of Practice on Taxation (the Code).
The existing position
The CJEU considered the compatibility of the UK’s existing CFC rules with EU law in Cadbury-Schweppes (Case C-196/04). It held that:
