In this chapter, Christiana HJI Panayi examines the relationship between EU law and international law in the area of tax law. Certain important aspects of this relationship are addressed, mostly in the context of tax treaties between Member States and between Member States and third countries. The chapter also analyses the development of Union competences in the area of external fiscal policy. It is shown that even though Member States have technically kept their competences over direct taxation, the combined effect of negative integration and growing secondary legislation has led to a situation where the Union has a great say over what can be included in tax treaties that Member States enter between themselves and with third countries. However, in the absence of clear rules, the line between what is and what is not permissible is beginning to be blurred. It is shown how this is exacerbated by the development of soft law in the context of the EU’s external fiscal policy, leading to some interesting results.
Christiana HJI Panayi
Christiana HJI Panayi, Werner Haslehner and Edoardo Traversa
Writing a book on European Union (EU) tax law was never going to be an easy task, not only due to the diversity of areas covered by this subject but also as a result of the fast-paced changes in the area. EU tax law is perhaps one of the most dynamic areas of EU law. Notwithstanding de minimis harmonisation, for direct taxation, and more extensive framework-style harmonisation, for indirect taxation, the combined effect of the Commission’s integrationist leanings with taxpayer proactiveness and the pursuit of litigation has led to the development of an impressive array of legal principles. Being supreme law, these principles permeate domestic tax systems and shape domestic tax rules, in variable intensities and with variable preemptive effects.