European Union, cross-border business activities and treaties on avoiding double taxation
The development of the European Community and the founding of the European Union (EU) led to the new legal order in Europe. Supremacy of the EU law, Community loyalty, fundamental freedom and the principle of non-discrimination caused specific treatment of business activities in the Internal Market....
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University Dzon Nezbit
2018-01-01
|
| Series: | Megatrend Revija |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/1820-3159/2018/1820-31591802061S.pdf |
| Summary: | The development of the European Community and the founding of the European Union (EU) led to the new legal order in Europe. Supremacy of the EU law, Community loyalty, fundamental freedom and the principle of non-discrimination caused specific treatment of business activities in the Internal Market. Majority of the companies in the EU perform cross-border business activities, which leads to referring to EU legal order, Member States' laws and frequently a different understanding of the adopted double taxation treaties. This situation is quite common when a member of the multinational group is located in a third state. European Court of Justice (ECJ) has an important role in creating general European law and European tax law. Its decisions have made overriding tax treaties legitimate. Although ECJ highlights the difference between European and international law and refuses to interpret tax treaties, it often uses international tax law principles and a doctrine of parallelism to enlarge tax treatment of Member States' residents to third states residents. Such practice has led to legal uncertainty and has created a need for a unique solution - drafting of the special EU Model Tax Convention on avoiding double taxation. |
|---|---|
| ISSN: | 1820-3159 2560-3329 |