Analysis: “The General Court Confirms the UK’s Group Financing Tax Exemption for Controlled Foreign Companies Is Illegal State Aid (United Kingdom and ITV plc v Commission, T-363/19 and T-456/19)” by David Pérez de Lamo

On 8 June 2022, the General Court dismissed the UK’s and ITV’s applications for annulment of the Commission’s decision of 2 April 2019 (SA.44896), which declared certain exemptions of the UK’s anti-tax avoidance rules for Controlled Foreign Companies (the ‘CFC rules’) as illegal State aid to certain multinational companies (United Kingdom and ITV plc v Commission, Cases T-363/19 and T-456/19). The General Court’s ruling underlines the importance of Member States establishing consistent tax regimes, and shows the Commission’s determination to combat artificial tax avoidance by multinational companies.

The CFC rules and the Group Financing Exemption