How far does Prunus clarify the rights of overseas countries & territories, asks Nathan Simmons
The issue of whether individuals in overseas countries and territories (OCTs) have the same rights as those of their member state “parents” has again raised its head in Prunus. The OCTs are 22 dependent territories which have a special relationship with one of the EU member states. Several of the OCTs have favourable tax regimes, and are frequently used by companies as a corporate base – the British Virgin Isles (which was the subject of Prunus), the Dutch Antilles and the Cayman Islands are all OCTs with favourable tax regimes.
The legal issue which arose in Prunus is whether a company which has its corporate parent in the British Virgin Isles (BVI) is eligible to claim an exemption from French tax as if the parent was located within a member state of the EU. This question has broader-reaching implications, since the classification of the OCTs as being an extension of their parent member states would mean individuals in every
