Compatibility of the Icelandic CFC Rule with the EEA Agreement Freedoms

The authors, in this article, discuss the Icelandic CFC rule, which was introduced in 2009 following the ECJ decision in Cadbury Schweppes . The authors argue that the rule infringes the freedom of establishment as laid down in Art. 31 of the EEA Agreement. They further take the position that the provision, although justified by the need to prevent tax avoidance is not proportionate.