In this article, the meaning and scope of free movement of capital under Article 63 of the Treaty on the Functioning of the European Union is (re) assessed, taking Brexit as an example. The scenario assumed herein is that Brexit will be extreme. Within this scenario, the United Kingdom (UK) can be handled as the USA or Brazil, for example.
In the bilateral relationship between the UK and the European Union (EU) Member States, there will be no legal obligations for the UK deriving from either primary or secondary law, whereas the EU Member States are still forbidden to restrict capital movements from and to the UK.
The CFC Rule in the Anti Tax Avoidance Directive, the EU standard on exchange of information, EU Good Governance Clauses, and their application in the Brexit extreme scenario are also discussed.Intertax