European Commission Opens State Aid Investigation into Group Financing Exemption under UK CFC Rules

The European Commission has announced that it has opened an in-depth investigation into the group financing exemption under the UK's CFC rules.

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The European Commission has opened an in-depth probe into a UK scheme that exempts certain transactions by multinational groups from the application of UK rules targeting tax avoidance. It will investigate if the scheme allows these multinationals to pay less UK tax, in breach of EU State aid rules.

Commissioner Margrethe Vestager in charge o…