EU Fact Sheets - General tax policy - 01-02-2018

EU Fact Sheets - General tax policy - 01-02-2018 26-03-2018 12:00 AM CEST The power to levy taxes is central to the sovereignty of EU Member States, which have assigned only limited competences to the EU in this area. The development of EU tax provisions is geared towards the smooth running of the single market, with the harmonisation of indirect taxation having been addressed at an earlier stage and in greater depth than that of direct taxation. Alongside these efforts, the EU is stepping up its fight against tax evasion and avoidance, which constitute a threat to fair competition and are the cause of a major shortfall in tax revenues. According to the Treaty, tax measures must be adopted unanimously by the Member States. While tax policy is greatly influenced by the case law of the European Court of Justice, the European Parliament has the right to be consulted in this regard, except in budgetary matters for which, as co-budgetary authority, it shares decision-making powers with the Council. In recent years, the European Parliament has played an important role in shaping tax policy in the EU as well as at global level, notably in the fields of tax evasion, tax avoidance and corporate taxation, including aggressive tax planning and money laundering. Source : © European Union, 2018 - EP QUESTIONS? STAY CONNECTED  Contact Us | This email was sent on behalf of the European Parliament · Bât. Altiero Spinelli · 60 rue Wiertz / Wiertzstraat 60 · B-1047 - Bruxelles/Brussels  · Belgium · Phone: +32(0)2 28 42111