Taxation of individuals: (Recent) developments in case law of the EC J

Abstract

The influence of European law on taxation, especially on direct taxes, is understandably increasing. Although personal income tax is not harmonised on European level, a partial harmonisation is being undertaken by the ECJ. In this essay I have dealt with some aspects of taxation of individuals:- the tax treatment of personal and family circumstances;- the taxation of non-resident taxpayers;- the taxation of artists and sportsmen;- tax obstacles to the cross-border provision of occupational pensions;- the incompatibility of exit taxes with the EC Treaty;- important pending cases before the ECJ on direct taxes. In all these fields the case law of the ECJ plays an important role and puts the Member States continually on alert. They constantly have to monitor their income tax legislation to check whether it is “EU proof”. In the long run, the harmonisation of the personal income tax systems of the various Member States may be inevitable; at present this still seems to be “a bridge too far” for most governments. In the absence of harmonising tendencies in legislation, the ECJ seems sure of what direction national income tax laws should go in order not to violate the EC Treaty.