Draft proposal amending CFC legislation

On 25 June 2007, the government published the first draft of a proposal amending the current CFC legislation.

The draft proposal expands the scope of a tax exemption granted with respect to certain low-tax jurisdictions within the EEA. This is a measure taken in accordance with the decision of the European Court of Justice (ECJ) in the case of Cadbury Shweppes (C-196/04).

The exemption from taxation of CFC income is, in accordance with the pr…