EU High Court Rules UK Tax Scheme for Multinational Companies Did Not Breach State Aid Law

The European Commission determined the tax breaks gave foreign companies an unfair advantage.

The towers of the Court of Justice of the European Union are seen in Luxembourg, on Jan. 26, 2017. Francois Lenoir/Reuters

The European Union’s high court ruled on Sept. 19 that a British scheme that allegedly granted tax breaks to certain multinational companies between 2013 and 2018 did not breach European Union state aid law.

The ruling by the Luxembourg-based Court of Justice of the European Union (CJEU) stemmed from the tax scheme promoted under the UK’s Controlled Foreign Company (CFC) rules, which are set out in the Taxation (International and Other Provisions) Act of 2010.