After CJEU Now EFTA Court Too Embraces Arm's-Length Standard as a Beacon; What's Next?
5 Pages Posted: 24 Feb 2023
Date Written: August 1, 2022
Abstract
The Court of the European Free Trade Association – the EFTA equivalent of the CJEU – now also is demarcating the room for maneuver for the Member States in company tax matters within the scope of the EEA Treaty freedoms by reference to the arm’s-length standard. The EFTA Court does so in the same way as the Court of Justice EU did in relation to the EU treaty freedoms last year in the Lexel case. Consequences may be far-reaching for the Member States’ room for maneuver in cases involving a unilaterally addressing of corporate tax avoidance.
Keywords: Court of Justice EU, Court of the European Free Trade Association, Transfer Pricing, tax avoidance, Base Erosion and Profit Shifting
JEL Classification: K34
Suggested Citation: Suggested Citation