§ Mr. Rookerasked the Secretary of State for Trade if he has yet had discussions with British companies regarding the definition of centre of effective management with respect to the proposed EEC companies statute; and if he will make a statement.
§ Mr. Clinton DavisNo. Progress on the European companies statute has not advanced sufficiently far to warrant discussion of such a detailed point. The definition of "centre of effective management" arises in connection with the determination of tax domicile, and although it may need clarification the underlying principle is that the statute should afford no taxation advantage to any company making use of it.