The confidential advice, seen by The Financial Times, suggests that some of the proposed rules exceed the jurisdiction of member states on taxation. The particular problem comes with the planned assumption that an entity will be taxed, for tax purposes, where its head office is located. This is important as only 11 countries are planning to participate in the tax. The legal advice - which is influential but not binding - says the assumption 'exceeds member States’ jurisdiction for taxation under the norms of international customary law as they are understood by the union'.
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