Controlled Foreign Company Rules and the EU

The article considers the limitations of applying controlled foreign company legislation, as contained in the EU Anti-Tax Avoidance Directive, implemented as a result of the publication of OECD/G-20 Base Erosion and Profit Shifting Final Report of 5 October 2015. In particular, the article considers the legitimacy of the CFC rules in the context of the fundamental freedoms and non-discrimination requirements, with main focus on the Court of Justice of the European Union case of Cadbury Schweppes (C-196/04).