Many States have incorporated General Anti-Avoidance Rules (GAARs) into their tax laws to prevent tax avoidance; within the EU, a GAAR is even mandatory for corporate taxation since 1 January 2019 (Article 6 of the EU Anti-Tax Avoidance Directive (EU ATAD)). States are recommended in the OECD Model Tax Convention on Income and Capital to…

It may well be said that George and Ira Gershwin’s simple and unforgettable line, “Let’s call the whole thing off!”, sums up the European Commission’s (“Commission”) view that the “wholly artificial arrangement” limitation in Cadbury Schweppes (C-196/04) does not apply to the CFC rule in Art 7(2)(b) of the Anti-Tax Avoidance Directive (“ATAD”). It is…