EU orders UK to recover illegal tax aid from multinationals

Britain will have to recover millions of euros from some multinationals after EU antitrust regulators ruled on Tuesday that an exemption in a UK tax scheme was illegal. The European Commission’s decision, following a 16-month investigation, is part of an ongoing crackdown against multinationals benefiting from sweetheart tax deals offered by EU countries. The EU investigation focussed on Britain’s Controlled Foreign Company (CFC) rules, which are aimed at attracting companies to set up headquarters in Britain and discourage UK companies moving offshore.