After CJEU now EFTA Court too embraces arm’s-length standard as a beacon; what’s next?

The Court of the European Free Trade Association – the EFTA equivalent of the CJEU – now also is demarcating the room for manoeuvre for the Member States in company tax matters within the scope of the EEA Treaty freedoms by reference to the arm’s length standard. The EFTA Court does so in the same way as the Court of Justice EU did in relation to the EU treaty freedoms last year in the Lexel case. Consequences may be far-reaching for the Member States’ room for manoeuvre in cases involving a unilaterally addressing of corporate tax avoidance.