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Case Study 2 Cadbury Schweppes Production Method

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Cadbury Schweppes Case Studies

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Cadbury Schweppes is another tax law case. The Cadbury Schweppes group had established two subsidiaries in Ireland solely in order that profits related to the internal financing activities of the Cadbury Schweppes group might benefit from the more favourable tax regime there. In the view of the national court, the subsidiaries were incorporated in Ireland in order not to fall within the application of certain UK tax provisions on exchange transactions. After the national tax authorities demanded the corporation tax, Cadbury Schweppes appealed. In the end the relevant UK court referred the case to the ECJ to clarify the EC law implications.

EC law implications

Once again, freedom of establishment (Articles 43 and 48 EC Treaty) was at issue in this case. The question referred to the ECJ was whether freedom of establishment precludes national tax legislation, under certain conditions, from imposing a charge upon a parent company on the profits made in a foreign subsidiary.

Decision of the court

In Cadbury Schweppes the ECJ indicates that it is necessary to examine the behaviour of a taxpayer who incorporates a company in another member state in light of the aim of freedom of establishment in order to assess whether the behaviour at stake is a mere exercise of freedom of establishment or a legal abuse. In this context, national measures restricting freedom of establishment may be justified where they specifically relate to wholly artificial arrangements aimed at circumventing application of the legislation of the member state concerned. The ECJ considered that freedom of establishment requires a stable and continuing basis in the economic life of a member state other than the state of origin. Therefore a company cannot invoke freedom of establishment in another member state for the sole purpose of benefiting from more advantageous legislation unless the establishment in the other member state is intended to carry on genuine economic activity. According to the ECJ a restriction of freedom of establishment is therefore possible in cases of a ‘letterbox’ or ‘front’ subsidiary.

With this ruling the ECJ seems to move away from Centros, where the company founders set up a company that had never engaged in any economic activity in its founding state and was aimed solely at avoiding Danish company law.

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COMMENTS

  1. Solved Case Study

    (c) critically discuss which of the following two quality control methods would be better for Cadbury Schweppes: • checking samples of the products after they have been made • making workers responsible for the quality of their own work (15 Marks) There are 3 steps to solve this one. Expert-verified Share Share Step 1 Explanation:

  2. Cadbury case study

    Cadbury made press advertising that were distributed around the country in the 1900s. Cadbury Dairy Milk, the world's most recognised and adored confection, was created in 1905. Cadbury had become to the 24th largest manufacturing company in the United Kingdom by 1930. Cadbury and Schweppes combined in 1969 to establish Cadbury Schweppes.

  3. Case Study 2 Cadbury Schweppes Production Method

    Cadbury Schweppes uses the services of a specialist R&D business based at Reading for its UK confectionery business In the case study it is stated that Cadbury Schweppes uses batch production methods to make its products and that it is important the products are of high quality.

  4. Case Study 1

    Answered step-by-step Solved by verified expert King Abdulaziz University • BUSE • BUSE - 605 Question Answered step-by-step Asked by MonaNassar Case Study 1 - Cadbury Schweppes Production Method Cadbury Schweppes is a multinational soft drink (beverages) and confectionery business that is based in the UK. The businessis a public limited company.

  5. 013248300

    Case Study 2 Cadbury Schweppes Production Method. Cadbury Schweppes is a multinational soft drinks (beverages) and confectionery business that is based in the UK. The business is a public limited company. It is involved in the manufacture, marketing and distribution of its many branded products.

  6. Case Study Assignment 02.docx

    Production & Operation Management Assignment# 02 Submitted by: Sabahat Fatima (FA18-BBA-011) Maryam Khan (FA18-BBA-017) Submitted to: Dr. Imran Malik Date of Submission: 13-04-2021 COMSATS UNIVERSITY ISLAMABAD, ATTOCK CAMPUS

  7. Case Study 1 OM .docx

    In the case study it is stated that Cadbury Schweppes uses batch production methods to make its products and that it is important the products are of high quality. Based on the information provided: (a) describe the differences between batch and flow production.

  8. Solved Case 1(Cadbury Schweppes Production Method)Cadbury

    Case 1 (Cadbury Schweppes Production Method) Cadbury Schweppes is a multinational soft drink (beverages) and confectionery business that is based in the UK. The business is a public limited company. It is involved in manufacturing, marketing, and distributing its many branded products. Cadbury Schweppes now employs, over 40000 people and its ...

  9. Cadbury case study-1

    Cadbury and Schweppes combined in 1969 to establish Cadbury Schweppes. Schweppes was a well-known British soft drink and carbonated mineral water manufacturer. Hershey was given the rights to make Cadbury candy products, and Schweppes Beverages was formed. Cadbury and Schweppes separated their chocolate and beverage businesses in 2008.

  10. PDF Case Study 2 Cadbury Schweppes Production Method

    In the case study it is stated that Cadbury Schweppes uses batch production methods to make its products and that it is important the products are of high quality. Based on the information provided describe the differences between batch and flow production.

  11. A Case Study Of Cadbury Schweppes Marketing Essay

    Cadbury Schweppes has nearly 54,000 employees and produces Fast Moving Consumer Goods (FMCG). Its products fall into two main categories: Confectionery. Beverages. Its portfolio of brands include leading regional and local brands such as Schweppes, Dr Pepper, Orangina, Halls, Trebor, Hollywood, Bournvita, and of course, the Cadbury masterbrand ...

  12. Cadbury Schweppes Case Studies with downloads and lesson plans

    Lean Production. Location of Business. Management of Change. Merger and Acquisition. New Product Development. New Technology. Product Development. Production Process. Quality. ... This case study focuses on how Cadbury Schweppes acquired the American-based company Dr Pepper/Seven-Up. Of particular interest is the thinking and purpose behind the...

  13. Cadbury Schweppes (Case C-196/04, 12 September 2006)

    Cadbury Schweppes is another tax law case. The Cadbury Schweppes group had established two subsidiaries in Ireland solely in order that profits related to the internal financing activities of the Cadbury Schweppes group might benefit from the more favourable tax regime there. In the view of the national court, the subsidiaries were incorporated ...

  14. POM CASE Study

    QUESTION: (30 MARKS) Answer the following questions on the case study. In the case study it is stated that Cadbury Schweppes uses batch production methods to make its products and that it is important the products are of high quality. Based on the information provided a) describe the differences between batch and flow production. (10 Marks)

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  19. Solved Q. 1 Read the small case study about Cadbury

    Based on the information provided (a) critically evaluate the reasons why Cadbury Schweppes uses batch production when making chocolate bars. (5 Marks) (b) critically discuss which of the following two quality control methods would be better for Cadbury Schweppes: .checking samples of the products after they have been made • making workers respo...