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Tax Treaty Trends in the European Union

From an economic perspective Tax Trends in the EU are modeled on the scope of sovereignty. The argument can be sustained by the fact that each EU member country is allowed to formulate its sovereign tax procedures. Exploring the dynamics exposed in such aspects of taxation as dual-income taxes, it becomes apparent that each EU member state transfers limited sovereignty through the broad scope of taxation. In such an arrangement it becomes obvious that the accelerated transfer of diverse aspects of taxation such as custom, levy, or income tax is distinguished from each EU member state.

Thus, the emerging tax trends in the EU indicate that tax transfer is based on stipulations or the explicit provisions involved in tax confederacy and tax harmonization. This parameter is testified by the manner EC abolished VAT border formalities. The emerging taxation trends within the EU are moving towards tax exemption regarding specific tax stipulations.

Nevertheless, in contrast to such measures, the emerging trends are articulately anchored within the scope of direct taxes. Yet regarding the dynamics of taxation, the extent of direct tax harmonization has been quite slow. However, in such a state relating to Mr. A, the situation can be reflected under Article 94 of EC which caters for diverse elements of approximation regarding the provisions concerning the legislation of member states. Equally, these concepts are etched in what EU Treaty considers as an internal market, that is, a market that is taxable but is void of obstacles. And this indicates why the concern for developing measures to sustain taxable markets has remained operational regarding direct, income, custom, as well as value-added taxes (Sinclair 2000).

Exploring the issues surrounding Hold Co. it can be asserted that EU Taxation does allow member states to define their taxation policies. Thus, the parameters, in this case, can be defined according to the language and the legislation thereof employed. The scope and nature of taxation are unique to each member state despite the language barriers as well as the interpretation of tax legislation. It is emerging that the tax trends as stipulated under the EU are designed to promote the dynamics of good governance regarding the tax aspects. This entails cultivating fertile ground for accountability, transparency, fair tax competition as well as the exchange of explicit tax information. Regarding that observation, the MS B Tax authority’s procedures of denying the benefits of the Parent-Subsidiary Directive and the benefits of the Tax Treaty between A and B is against EU Tax procedures. Looking at the interpretative aspects of tax trends, it is evident that the aspects of the market with no borders or restrictions have over time been nurtured to develop a strong internal market. The above-mentioned case can be defined as an abuse of the procedures regulating every aspect concerning direct and domestic taxes either directly or indirectly. This could be viewed as one of the core stumbling blocks affecting EU tax integration in general (Hitchings 2008).

The emerging markets and financial trends have shown that professional institutions such as schools and medical institutions are exempted from the broad aspect of taxation. Applying this principle to the case relating to Professor W.B., who is not a legal citizen of the EU, It can be asserted that due to the agreement entered by the US and the EU member states the professor was entitled to the benefits and privileges of tax exemption. Examining the measures surrounding the communication regarding the concepts of financial amenities under EU tax policy, the tax authorities can be said to have violated the professor’s benefits. The purpose of the tax exemption can be allied to the concern surrounding EU contribution regarding transparency in the area of direct taxation both within and outside its borders.

From the presented cases, it can be argued that Tax trends in EU member states are moving towards a more consolidated base. This can be allied to the fact that the aspects of individual income tax, direct tax, consolidated tax as well as statutory tax-transfer are becoming more harmonized. In such a light, it can be pointed that the emerging trends reflect the nature and the challenges correlated to the concern of developing a viable tax language among the member states. Examining the entire instance regarding article 25 of the EC Treaty, taxes concerning imports as well as export duties are prohibited within EU member states. Equally, under the guidelines developed under article 93 diverse tax turnovers are synched. Therefore, the EU tax treaty trends can be said to be developing due to the changes propagated by language and economic values (Pinker 1994). The case touching on tax agreement regarding the artist is reflected on the deliberation of taxation as is with the Julio Iglesias case, Decision of 19 June 2009 (Spain).though the elements of taxation as stipulated article 17.2 of the OECD Model Convention, as it was signed before 1977. This demonstrates how the dynamics of EU cross-border taxation are employed.


Hitchings, Henry (2008) Secret life of word.NY, Farrar.

Pinker, Steven (1994) The Language instincts.NY, Penguin.

Sinclair, Ian (2000) Vienna Convention.Oxford, Manchester University Press.

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"Tax Treaty Trends in the European Union." StudyKraken, 21 Mar. 2022,

1. StudyKraken. "Tax Treaty Trends in the European Union." March 21, 2022.


StudyKraken. "Tax Treaty Trends in the European Union." March 21, 2022.


StudyKraken. 2022. "Tax Treaty Trends in the European Union." March 21, 2022.


StudyKraken. (2022) 'Tax Treaty Trends in the European Union'. 21 March.

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