F2002 - Assignment of Taxing Rights





This project parts deals with the assignment of taxing rights. Due to recent political developments the project part developed its perspective further from the assignment of taxing rights between the Member States to focus on the assignment of taxing rights to the EU as supranational body.

In its report Financing the European Union (COM 2004, 505 final), the European Commission proposed the introduction of an EU-Tax as an own source of revenues. According to the Commission, the adoption of a tax at the EU-level would make it possible to overcome major drawbacks of the current system of own resources. These encompass the absence of a direct link between financing the EU and EU citizens, the dependence on transfers from national treasuries, distortions in the allocation of economic resources and an unnecessary complexity. A tax-based own resource system would also help focusing expenditure debates on substance rather than on purely national budget net positions. In the Commissions working paper No 1/2004, Tax-based EU own resources: an assessment, nine candidates are discussed as possible EU-Taxes: Modulated VAT, EU Corporate Income Tax, Energy Taxation, Excise Duties On Tobacco and Alcohol, Transfer Of Seigniorage Revenue, Communication Taxation, Personal Income Tax, Tax On Financial Transactions and Climate Charge On Aviation.

In the light of these developments, the project deals with the question whether the present legal framework of the EC provides a sufficient legal basis for an EU-Tax or if an amendment of the treaty is necessary. Moreover, the project will take a closer look at the compatibility of an EU-Tax with the financial systems of the Member States and its administrative handling. Another issue the project aims to analyze is the conformity of an EU-Tax with the fundamental freedoms and if the introduction of a tax at EU-level can lead to double taxation problems.
Tatsächlicher Beginn/ -es Ende1/01/0315/12/10