Abstract

The article aims to investigate potential overlap of the CFC regulations with provisions of the Parent-Subsidiary Directive, with particular emphasis put on whether such regulations may run against the Directive. This issue becomes even more important as the Anti Tax Avoidance Directive requires all EU Member States to implement CFC regulations based on a minimum standard. The overlap in question is thoroughly discussed using three factual examples, relating accordingly to participation exemption, dividend income and anti-hybrid clause. The general conclusion of the article is that although no infringement can be identified, then from the EU Single Market perspective more cohesion and coordination between the CFC regulations and the Parent-Subsidiary Directive is needed.