Neutrality and Territoriality — Competing or Converging Concepts in European Tax Law?

25 Pages Posted: 9 Jun 2015

See all articles by Wolfgang Schoen

Wolfgang Schoen

Max Planck Institute for Tax Law and Public Finance, Department of Business and Tax Law

Date Written: June 8, 2015

Abstract

This article presents an analysis of the ECJ case law on the interaction between the fundamental freedoms and national tax systems. It pleads for a strict application of a unilateral neutrality principle based on non-discrimination and rejects those strands of the judicature which apply an overall perspective to the taxation of cross-border events by two (or more) involved states. The article criticizes the emerging trend in the ECJ’s jurisprudence to stress the territorial demarcation of Member States’ taxing rights and supports a sophisticated application of the concept of "coherence" in order to reconcile the requirements of neutrality with the territorial limitations of taxing power.

Keywords: international tax law, European tax law, international tax allocation

JEL Classification: F23, H25, K34

Suggested Citation

Schön, Wolfgang, Neutrality and Territoriality — Competing or Converging Concepts in European Tax Law? (June 8, 2015). Bulletin for International Taxation April/May 2015, Working Paper of the Max Planck Institute for Tax Law and Public Finance No. 2015-01 , Available at SSRN: https://ssrn.com/abstract=2615832

Wolfgang Schön (Contact Author)

Max Planck Institute for Tax Law and Public Finance, Department of Business and Tax Law ( email )

Marstallplatz 1
Munich, 80539
Germany

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