International tax law: corporate taxation and the need for a european tax jurisdiction mechanism
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Abstract
Our contribution aims to analyze corporate taxation in the European Union, highlighting the tension between the economic integration of the internal market (resulting from market freedom) and the maintenance of the fiscal sovereignty of the Member States. The European Union has developed regulatory coordination mechanisms, such as tax directives and initiatives to combat tax evasion. However, direct corporate taxation remains distant, revealing significant differences between national regimes.
Our study aims to reveal some problems, relevant in our view, including legal uncertainty, the risk of double taxation, and the facilitation of aggressive tax planning practices. The actions of the Court of Justice of the European Union, although essential, are limited by a predominantly reactive and case-by-case nature, failing to ensure effective and timely interpretative uniformity.
Through a brief legal and comparative analysis of the tax systems of several Member States, the article allows us to conclude that the existing regulatory harmonization, although continuously evolving, is still insufficient to guarantee the coherence of the European tax system. In this context, we advocate for the need for institutional evolution that includes the creation of a European tax jurisdiction mechanism, with the power to issue binding, uniform and swift decisions.
Thus, the consolidation of a European tax area depends on the "balance" between national tax sovereignty and the need for greater integration, ensuring predictability, fairness and efficiency in the functioning of the internal market.
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