Brussels, 18/10/2004 (Agence Europe) - Every single Member State of the newly enlarged EU has one or more tax rules which violate EU taxation law, according to a PircewaterhouseCoopers study. The EU country with the most tax illegalities is the UK, followed by France and Denmark. The least discriminatory tax systems are in Cyprus, Estonia, Lithuania, Malta and Slovakia. The report notes that 'all of the ten accession countries which joined the EU on 1 May 2004 - with the exception of Latvia and Slovenia - have no more than two breaches each.' The research analysed eight domestic tax legislation areas - absence of cross-border relief; controlled foreign company regime; company migration exist charges; deferral only for domestic transfers; domestic versus foreign dividends tax treatment; imputation system; thin capitalisation; and transfer pricing. An example of discrimination is the fact that a UK company can only claim tax relief under domestic law on losses relating to its UK subsidiaries but not those based abroad. Peter Cussons, international corporate tax partner of PricewaterhouseCoopers, said: 'in the past ten years some 87 cases relating to discriminatory direct tax legislation have been heard by the European Court of Justice, of which 85 have found in favour the taxpayer.'