Preventing double taxation in the European Union: let’s make it a matter of practice, rather than of principle
(2024) Liber Amicorum Luc De Broe — ISBN: [978-94-03-03377-8], p. 575-588, published
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- In the area of direct taxation, the case-law of the Court of Justice has developed in a way that is as striking as it is unexpected. Through rulings that have made the history of European legal and tax integration, the Luxembourg judges have been able to put an end to tax differences of treatment within an internal market, even if it meant departing from the consolidated, almost customary, application of the principles of international taxation . At the same time, through the application of directives and State aid rules, European institutions have considerably limited the scope for States to use their tax systems to capture revenues and investments whose circulation had been facilitated by the establishment of the internal market . Nevertheless, European law appeared powerless in the face of a recurring phenomenon, which constitutes a serious threat to further tax integration: 'simple' international double taxation - which is not accompanied by a difference in treatment against cross-border situations by one of the states concerned - remained hopelessly outside the scope of the freedoms of movement and is only partially addressed by secondary legislation. However, recent legislative and case-law developments seem to call this situation into question, at least in part. Even if it is unlikely that in a near future a general principle of prohibition of cross-border double taxation will be recognized, EU law offers more and more tools to remedy the consequences of that phenomenon, solving the practical issues faced by taxpayers across the EU.
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Traversa, E. (2024). Preventing double taxation in the European Union: let’s make it a matter of practice, rather than of principle. In F. Debelva (ed.) (ed.), Liber Amicorum Luc De Broe (p. p. 575-588). Wolters Kluwer. https://hdl.handle.net/2078.5/238097