The EU Commission has found that the UK’s “patent box” scheme—adopted earlier this year and providing a 10% rate of corporation tax for income derived from patents—violates the EU Code of Conduct for Business Taxation, which aims to prevent countries from operating policies that result in harmful tax competition.  According to a recent article, the patent box violates the code for two reasons.  First, it is not “sufficiently linked to real economic activity” given that “it would allow companies that are merely managed in the U.K. to claim the credit, regardless of whether the actual ‘development’ activities related to the patent take place in another country.”  Second, its formula for determining the amount of profit derived from a particular patent is not “in line with international principles agreed by nations at the Organization for Economic Cooperation and Development.”