Denmark - Are the Danish CFC Rules in Conflict with the Freedom of Establishment? – An Analysis of the Danish CFC Regime for Companies in Light of ECJ Case Law
- P. Koerver Schmidt
- European Taxation, 2014 (Volume 54), No 1
- 2 December 2013
Unlike other Member States, Denmark reacted to Cadbury Schweppes (C-196/04) by widening the scope of application of its CFC legislation for companies to purely domestic situations. Inspired by the BEPS Report recommendation on strengthening CFC legislation – and in light of the lack of certainty under existing ECJ case law – this article analyses whether or not the Danish CFC rules applicable to companies should be considered in line with the freedom of establishment.