On September 13, 2006, the London office authored the Alert Memorandum, “European Court of Justice’s Decision in Cadbury Schweppes: UK CFC Rules Too Restrictive.” The Alert discusses the European Court of Justice’s (“ECJ”) decision that the UK’s tax legislation on Controlled Foreign Companies was too restrictive. The ECJ held that it was permissible for the legislation to apply to “wholly artificial arrangements”, leaving it to the national court to determine whether the legislation achieved this.