The Resource Progressive turnover taxes under the prism of the State aid rules : effective tools to tax high financial capacity or inconsistent tax design granting selective advantages?

Progressive turnover taxes under the prism of the State aid rules : effective tools to tax high financial capacity or inconsistent tax design granting selective advantages?

Label
Progressive turnover taxes under the prism of the State aid rules : effective tools to tax high financial capacity or inconsistent tax design granting selective advantages?
Title
Progressive turnover taxes under the prism of the State aid rules : effective tools to tax high financial capacity or inconsistent tax design granting selective advantages?
Creator
Subject
Language
  • eng
  • eng
Summary
The aim of this article is to examine the compatibility of turnover-based business taxes with the EU State aid provisions. Turnover-based progressive taxes are increasingly popular among the Member States. However, these taxes raise concerns regarding their compatibility with the EU State aid rules. Although there are multiple State aid concerns that deserve attention depending on the actual design of such taxes, the core issue is whether the ability-to-pay principle can serve as a legitimate objective underpinning turnover taxes and thus justify the different treatment of high-turnover and low-turnover undertakings. This question requires the careful assessment of de facto selectivity because in the case of progressive turnover taxes potential selectivity could only arise from the general construct of the tax in the absence of a derogation from a reference system. This article proposes an alternative test for the de facto selectivity boiling down in essence to the examination of the consistency of the tax. Furthermore, it analyses digital turnover taxes for their consistency with their declared objectives. Finally, the article explores how the Court's unnecessarily strict approach to the admissibility of State aid questions in preliminary ruling procedures when the main proceeding concerns an individual tax notice could be eased
Citation source
In: European State aid law quarterly. - Berlin. - Vol. 19 (2020), no. 3 ; p. 251-270
http://library.link/vocab/creatorName
  • Szudoczky, R
  • Károlyi, B
Geographic coverage
  • Europe
  • European Union
Language note
English
http://library.link/vocab/subjectName
  • State aid
  • turnover tax
  • tax rate
  • selectivity
  • ability to pay
  • DST
Label
Progressive turnover taxes under the prism of the State aid rules : effective tools to tax high financial capacity or inconsistent tax design granting selective advantages?
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2020/E-F/EUROSTAIL/3_251-270.pdf
Instantiates
Publication
Note
20201103
Label
Progressive turnover taxes under the prism of the State aid rules : effective tools to tax high financial capacity or inconsistent tax design granting selective advantages?
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2020/E-F/EUROSTAIL/3_251-270.pdf
Publication
Note
20201103

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