Reforms ‘may fail European law test’

Following the 2006 European Court of Justice judgment in the Cadbury Schweppes case, changes were announced 7 December 2006 by the UK HM Treasury to the CFC rules to ensure they remain effective and to provide increased certainty for business. The UK Government said it remained committed to exploring a wider package of reform relating to the taxation of foreign profits, in consultation with business, in 2007.