Gottfried Schellmann Moscow, December 2009 How can CFE contribute to sound EC-tax law? CFE`s cooperation with the Commission, the Parliament and the Council

Primary law –Is the supreme source of law laid down in the Treaties, which determines the general principles of the EC-law, like the 4 freedoms and the organisational concept. –The Treaty of Lisbon has now established to what extent responsibilities in tax matters have been conferred to the European Institutions, and what remains within the sovereignty of the States 2

The role of the ECJ –The court has to take care of the interpretation of EC-law, and determined to what extent the 4 freedoms interfere in tax matters. –CFE maintains a ECJ – task force group consisting of distinguished tax experts, practitioners as well as academics, who produce opinion letters forwarded to all interested parties. 3

Technical work –The CFE has established two sub-committees, one for direct tax purposes, one for indirect tax purposes –The direct tax sub-committee provides papers on subjects concerning direct tax issues, insofar covered by secondary law Parent/Subsidiary Directive, Merger Directive, Interest/Royalty Directive, Savings Directive, Mutual Assistance Directives 4

Technical work –The direct tax sub-committee is involved in any of the developments of new proposals –The indirect tax sub-committee prepares mostly papers for either issues concerning VAT – law, which is by far the most harmonised part of tax law in the EU, or to recently released court decisions. 5

Technical work –Both committees have regular meetings as well as social events together with the Commission –CFE is organising working breakfasts with the European Parliament –CFE has good ties with the Council Last 50 years 6

Activities –CFE is organising the European Tax Forum in April each year –Occasionally CFE is organising seminars or conferences on the most timely subjects –CFE is producing a yearbook on several tax matters 7

The impact of the treaty of Lisbon –Responsibility in subsidiary matters conferred to the Parliaments of MS –9 Parliaments are able to enforce a reasoned opinion –Normal legislative procedure may be blocked by more than 50 percent of the MS Parliaments 8

Impact on tax matters –German constitutional court quoted tax matters as last resorts of the sovereign MS –Cooperation between Parliaments of the MS has started 2006, in order to enhance the impact of the new rules 9