Cadbury Schweppes : the ECJ significantly limits the application of CFC rules in the member states

In this article, the author analyses the important European Court of Justice (ECJ) judgment in the recent Cadbury Schweppes case regarding the compatibility of controlled foreign company (CFC) legislation with EC law. In particular, the author reviews the facts of the case, the relevant UK law and the ECJ's decision. He concludes by commenting on the effects and implications of the ECJ's judgment.