publication . Bachelor thesis . 2008

Tax Treaties and EC Law : Development, Problems and Solutions

Muren, Gustaf; Krohn, Peter;
Open Access English
  • Published: 01 Jan 2008
  • Publisher: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Rättsvetenskap
  • Country: Sweden
Abstract
Double taxation treaties play a vital part in the international relations between states regarding taxation matters. Since double taxation can occur as soon as a person has income in more than one state, it is very important that there can be effective remedies to the problems that can occur in these situations. Double taxation treaties are necessary in most situations created by international trade and they are even more important in such a free flowing economic co-operation such as the EU, where the trade between the Member States is not only free but also very frequent. Most double taxation treaties are based on the Model Treaty created by the OECD. Even stat...
Subjects
free text keywords: EC Law, Tax Treaties, Commercial and company law, Affärsrätt
Related Organizations

2 Development ......................................................................... 9 2.1 Introduction ................................................................................... 9 2.2 Case law on direct taxes and EC law............................................ 9 2.2.1 The competence of the ECJ ............................................... 9 2.2.2 Avoir Fiscal ....................................................................... 10 2.2.3 Comparability of residents and non-residents................... 10 2.2.4 Accepted grounds of justification ...................................... 11 2.2.5 Rejected grounds of justification....................................... 11 2.3 EC directives on direct taxation................................................... 12 2.4 Case law on tax treaties and EC law........................................... 13 2.4.1 Concerning the cases ....................................................... 13 2.4.2 Gilly................................................................................... 14 2.4.3 Saint-Gobain..................................................................... 20 2.4.4 de Groot............................................................................ 25 2.5 Summary..................................................................................... 28

3 Problems ............................................................................. 30 3.1 Introduction ................................................................................. 30 3.2 Allocation of fiscal jurisdiction...................................................... 30 3.2.1 Connecting factors and discrimination .............................. 30 3.2.2 Allocation or exercise?...................................................... 33 3.3 General problems........................................................................ 35 3.3.1 Problems put before the ECJ............................................ 35 3.3.2 Problems not put before the ECJ...................................... 37 3.4 The MFN principle, tax treaties and EC law ................................ 43 3.4.1 About the principle ............................................................ 43 3.4.2 The D case ....................................................................... 44 3.5 Economic and political aspects ................................................... 50 3.5.1 Introduction....................................................................... 50 3.5.2 The ECJ and the EC......................................................... 50 3.5.3 The current situation ......................................................... 52 3.6 Summary..................................................................................... 52

5 Analysis............................................................................... 69 5.1 Introduction ................................................................................. 69 5.2 Development ............................................................................... 69 5.3 Problems ..................................................................................... 70 5.4 Solutions ..................................................................................... 70 5.5 Conclusion .................................................................................. 71 3 See e.g. case C-264/96 Imperial Chemical Industries plc (ICI) v Kenneth Hall Colmer (Her Majesty's Inspector of Taxes) [1998] ECR I-4695, para. 19.

26 See e.g. case C-330/91 The Queen v Inland Revenue Commissioners, ex parte Commerzbank AG [1993] ECR I4017.

43 C-307/97 Compagnie de Saint-Gobain, Zweigniederlassung Deutschland v Finanzamt Aachen-Innenstadt [1999] ECR I6161.

44 C-385/00 F.W.L. de Groot v Staatssecretaris van Financiën [2002] ECR I-11819.

45 Hilling, M, Free Movement and Tax Treaties in the Internal Market, p. 242.

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