The Tax Harmonization in the European Union

Daniela Pîrvu
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Daniela Pîrvu: University of Pitesti

Chapter 1 in Corporate Income Tax Harmonization in the European Union, 2012, pp 8-24 from Palgrave Macmillan

Abstract: Abstract This chapter highlights the delicate aspects of tax harmonization in the European Union (EU) from a conceptual, legal and rational perspective. Tax harmonization in the EU is not a common policy in the tax field, but the adjustment of national fiscal policies are necessary for proper functioning of the single market. Tax harmonization can be achieved spontaneously (through market forces), by the actions of European institutions (fiscal policy coordination, the harmonization of tax laws, etc.), or by action of the European Court of Justice (prohibiting certain national tax rules that violate EU rules). It is a prerequisite for the creation and effective functioning of the Single Market. Although member states have, in principle, the freedom to set their own rules regarding national tax systems, this freedom is conditioned by observance of priority objectives of the EU’s founding treaties. Member states should avoid discriminatory tax measures (which can lead to disadvantageous treatment of people, goods, services or capital from other member states).

Keywords: European Union; Foreign Direct Investment; European Union Member State; Foreign Direct Investment Location; European Union Treaty (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-1-137-00091-0_2

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DOI: 10.1057/9781137000910_2

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