Tax avoidance (European Union regulation)

  • Rafael Sanz Gómez Universidad de Sevilla
Keywords: Tax avoidance, European Union, tax abuse, aggressive tax planning, internal market, BEPS, harmonization

Abstract

Tax avoidance is defined as the implementation of strategies of minimization of the tax burden that are in accordance with the literal wording of the regulations but not with their systematic or teleological interpretation. The tax system reacts to tax avoidance by, at least, supressing the benefit obtained by the taxpayer. Within the European Union, the concept of tax avoidance –like everything regarding tax matters– is analysed from the perspective of the promotion of an internal market under conditions of free competition. The stand taken by the Union institutions has shifted from promoting free movement of goods, capital, services, and labour while allowing the application of State anti-avoidance measures only on an exceptional basis, to consider that tax avoidance damages the conditions of free competition and positive and coordinated action is necessary. Here, a milestone has been the enaction of the Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market.

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Published
2017-09-29
How to Cite
Sanz Gómez, R. (2017). Tax avoidance (European Union regulation). EUNOMÍA. Revista En Cultura De La Legalidad, (13), 251-259. https://doi.org/10.20318/eunomia.2017.3821
Section
Voices on Lawfulness