CFC legislation, passive assets and the impact of the ECJ’s Cadbury-Schweppes decision
Martin Ruf and
Alfons Weichenrieder ()
No 1315, Working Papers from Oxford University Centre for Business Taxation
In its Cadbury-Schweppes decision of 12 September 2006 (C-196/04), the ECJ decided that the UK CFC rules, which were implemented to subject low taxed passive income of foreign affiliates to UK corporate tax, implied an infringement of the freedom of establishment. Consequently, many EU countries including Germany changed their legislation. The paper discusses to which extent the ECJ ruling has impacted on the allocation of passive assets in German multinationals. Using firm level data we find evidence for an increased preference for low-tax European countries compared to non-European countries.
Keywords: European Court of Justice; corporation tax; foreign direct investment; CFC regulation; passive investment (search for similar items in EconPapers)
JEL-codes: H25 H73 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-eur, nep-law and nep-pub
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://www.sbs.ox.ac.uk/sites/default/files/Busine ... Series_13/WP1315.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/Publications/Working_Papers/Series_13/WP1315.pdf [301 Moved Permanently]--> https://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/Publications/Working_Papers/Series_13/WP1315.pdf)
Working Paper: CFC Legislation, Passive Assets and the Impact of the ECJ's Cadbury-Schweppes Decision (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:btx:wpaper:1315
Access Statistics for this paper
More papers in Working Papers from Oxford University Centre for Business Taxation Contact information at EDIRC.
Bibliographic data for series maintained by Dongxian Guo (). This e-mail address is bad, please contact .