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Image header Agence Europe
Europe Daily Bulletin No. 9387
Contents Publication in full By article 27 / 33
GENERAL NEWS / (eu) eu/court of justice

United Kingdom “thin cap” legislation is generally compatible with freedom of establishment

Luxembourg, 15/03/2007 (Agence Europe) - Companies always seek ways to avoid paying tax on investment in their subsidiaries, and especially on the profits which they hope thereafter to accrue. The British system in place between 1988 and 2004 allowed precisely for tax reductions on parent company-subsidiary transfers, but not in all cases. Despite the collective action lodged at the High Court of Justice of England and Wales by companies not able to benefit from these privileges, the Court...

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