Summary of all lessons, powerpoint together with notes: everything you need to pass the exam (just learned this summary and got a good grade)
Summary of all lessons, powerpoint put together with notes: everything you need to pass the exam (only learned this summary and got nice grade)
European taxation
1. General introduction
A. Legal bases of European taxation
a. EU budget
b. Different categories of rules
c. Overview treaty rules (TEU, TFEU)
General rules on objectives, instruments and powers of the EU
(specific) treaty rules directly/indirectly relating to taxation
d. Procedural routes to the CJEU
B. Interplay of national tax provisions and EU law: positive and negative integration
a. Hierarchy of norms
b. Integration of EU law into 27 domestic legal systems
c. Examples from CJEU case-law
2. Indirect taxation
A. Harmonization of indirect taxes (art. 113 TFEU): rough overview
a. Turnover taxes (VAT)
b. Excise duties
c. Other forms of indirect taxation
Capital duties
Project financial transaction tax (FTT)
Project digital service tax (DST)/digital advertising tax (DAT)
B. CJ case-law on treaty rules (art. 30, 34/35, 110 TFEU)
3. Direct taxation
A. CJ case-law on fundamental freedoms
a. Free movement of goods (art. 34/35 TFEU)
b. Free movement of workers (art. 45 TFEU)
c. Freedom of establishment (art. 49, 54 TFEU)
d. Freedom to provide services (art. 56, 57 TFEU)
e. Free movement of capital (art. 63(1) TFEU)
f. EU-situations between MS
g. Third country situations
h. Free movement of EU citizens (art. 18, 21 TFEU)
B. Harmonization of direct taxes (art. 115 TFEU): the status quo
a. Merger directive
b. Parent-subsidiairy directive
c. Interest and royalties directive
d. Anti-tax avoidance directive
e. Pillar two directive (global minimum taxation)
f. Current commission activities
Communications on current focus
Project taxation of significant digital presence
New project prevention of misuse of shell entities
New project debt-equity bias reduction allowance (DEBRA)
New project faster and safer withholding tax refund (FASTER)
New project business in Europe: framework for income taxation (BEFIT)
New project head office tax system (HOT)
New project transfer pricing
g. Annex: EU list of non-cooperative jurisdictions
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,4. Procedural issues
A. Co-operation between national tax authorities
a. EU legislation on mutual assistance
Exchange of information
Recovery of claims
b. Mutual agreement and arbitration procedures (double taxation)
EU arbitration convention (transfer pricing)
Directive on double taxation dispute resolution mechanism
B. Infringement of EU law: potential consequences
5. State aids
A. Overview
B. Procedural questions
a. Pivotal role of the European Commission
Repressive control of existing aid
Preventive control of new aid
b. Supplementary role of national courts
C. Substantive issues
a. Criteria for forbidden state aid (art. 107(1) TFEU)
Imputability of measure to a MS
Economic advantage for recipients
Selectivity
Negative effect on competition and cross-border trade in EU
b. Regional selectivity
c. Material selectivity
Aid schemes
Individual aid measures
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,European taxation
1. General introduction
A. Legal bases of European taxation
a. EU budget: revenue/expenditure
-EU is a supranational organization and has its own budget
27 individual member states => what are the main sources in most countries for finances of
public spendings: taxes
This is the same in the EU
o Rules of the budget in TFEU: financial provisions (art. 310-324)
-Art. 312 TFEU: expenditure (where does the money go?)
Multiannual framework (MFF) which aims what they will potentially spend over the next 7 years
(at least 5 years, but the EU takes a 7 year period) and where they should get that money from =>
subdivided into annual budgets (so in 7 parts)
The current MFF is going to be for 2021-2027: €1, 200 billion (= €1, 2 trillion)
The typical types of EU expenditure are
o The EU policy areas = payments through programmes such as single market, innovation,
digitalisation, environmental protection, border control, defence
o The EU Public Administration = salaries, health insurance, pensions
Plus new temporary instrument “NextGenerationEU” (for 2021-2026): to support economic
recovery from COVID pandemic (ca. € 800 bln)
-Art. 311 TFEU: revenue (where does the money come from?)
There is a traditional system of own resources disputed between EU institutions
The main part of the EU Budget comes from the own resources of the EU
-What about the elements of the EU Budget?
Own Resources: 142.4 billion (ca. 90%): most important part
o Traditional own resources = customs duties on 3rd country imports
o Fixed share of national VAT base, thus not the amount VAT levied by a MS but the taxable base
under VAT law on which this is to be calculated => 2/3 of the total budget
o Fixed amount based on Gross National Income (GNI) (66,1% of total EU revenue)
Other Revenue: 15.7 billion (ca. 10%): everything that is earned by the EU
o Competition law fines (cartels etc.), when big undertakings abuse a dominant position or have
cartels on certain products to the disadvantage of customers
o Receipts of interest payments, EU money on bank accounts can deliver some interest
o Repayments of unused financial assistance, when aid paid by the EU is not used it will flow back
o Various other receipts (e.g., donations, contributions from non-EU countries to certain
programmes)
o Tax on salary of EU officials: this is actual the only actual tax the EU is levying on the whole
budget. It’s some sort of withholding tax, only the net payment is made and the rest stays in the
budget. For instance in 2012 the nobel price paid was awarded to the EU as supranational institution
and the question where does money go? It went to the other EU revenue.
-Wanting to reform the own resources: already long reform discussion
Last proposal: COM(2023) 330 of 20.6.2023 for “next generation of EU own resources”
Political compromise reached by Council on 20.12.2023
New rules expected before June 2024 (EP elections)
There will be some changes, but no European taxation will arrive
-There is no European mechanism which applies taxes directly to individuals or enterprises
There are no real taxes directly paid to the EU: VAT is paid to the member states and trough the
system of own resources there is national contribution
There is a very small and closed system on the basis of EU Law taxes which are being paid
directly: the taxation of EU officials (every month salary of these officials is taxed)
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, -The legal basis of these EU Officials Taxes
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