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EU Details Reasoning Behind Ruling Against UK Tax Rule

Law360 (April 26, 2019, 8:42 PM EDT) -- European Union regulators have said a U.K. scheme to shield some multinational companies from rules meant to deter tax avoidance cannot be justified by either territoriality or the principle of freedom of establishment.

In a 48-page report published Thursday, the European Commission detailed the reasoning for its finding this month that the British government had engaged in a form of state aid, in violation of EU law.

The commission, an EU executive body that enforces the bloc’s competition and antitrust rules, among other functions, had also used its April 2 decision to order the U.K. to recover money lost through its controlled...

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