The ECJ Jurisprudence on Statutes of Limitations in Tax Matters and the Discrimination at the Level of Legal Security

Abstract

This article provides some thoughts on the European Court of Justice (ECJ) jurisprudence on the compatibility of domestic laws which provide an 'extended' recovery period (statutes of limitations) applicable (only) in cross-border situations with the EU free movement of capital. This analysis reflects how the ECJ has limited the discrimination at the level of legal security that follows from the Member States' tax systems that provide a model of dual limitation periods in tax matters depending on the internal or cross-border nature of the situation. This ECJ's jurisprudence is of great relevance in the current context where the strengthening of the fight against tax fraud constitutes an important tool for achieving a higher levels of legitimacy of the tax systems and for improving the contribution of the tax system to the 'fiscal consolidation' of the States. However, the model of extended limitation periods for cross-border situations established by some countries, to an extent, has been called into question by such ECJ jurisprudence.