CFC ConDoc: observations on the HMRC analysis of EU law

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.

A flawed analysis?

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 the general purpose exemption (GPE) in particular.

While...