Article by Tom Melvin, independent tax adviser with Elvira Group Ltd. This article appeared in the November 2006 issue of Tax Adviser. There is no doubt that the pace of development and the level of intervention and impact of European taxation is increasing at a rapid rate, but it is also clear that such increases may have a significant impact on member states' taxing rights and potentially on their ability to manage their fiscal affairs according to the wishes of national legislatures. This potention conflict is highlighted by the provisions of the EC Treaty, which require member states to align much of their taxation legislation to Community legislation; and while this does not currently amount to harmonisation, this may well be what the Commission desires in the future.
November 2006 by
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