The direct tax law of Member States of the European Union is

influenced by a vast body of judgments of the European Court of

Justice applying either the Treaty of the European Community or the

EC harmonization directives. One may now speak in that respect of a

European tax law.

This book, based on a report drafted at the request of the European

Parliament, analyses the Court's rulings and their influence on the

domestic tax law of the Member States.

It is divided in three titles.

The first title describes the institutional framework of the EU and

the legal context in which the Court decides on its cases. The basic

elements of the international tax systems of the Member States are

briefly recalled, as well as the EC Treaty provisions and secondary

legislation relevant for direct taxation.

In the second title, the Court's judgments in the area of direct taxation

are analysed. The cases have been divided in three main categories, viz.

taxation of individuals, taxation of companies and taxation of company

shareholders.

This title includes also, for each type of cases, an attempt to describe

implementation of the Court's case-law by Member States. Particular

attention is given to Member States whose legislations have been

directly assessed by Court decisions as to their compatibility with EC

law.

In the third title, an overview of the existing secondary legislation

concerning direct taxation (Directives and Regulations) - and the case-law

pertaining to it - is given, as well as a presentation of the most

important initiatives of the European Commission in this area.

Finally, provisional conclusions are drawn on the manner in which the

development of the Court's case-law influences the direct tax systems

of the Member States.