The Definition and Modern Trends of Tax Planning in the European Union. Summary of the Doctoral Thesis

Abstract

The present PhD Thesis is devoted to the actual legal issue of the concept, content, and basis of setting the criteria of lawful tax planning as a corner stone of the economic operation of the European business undertakings. The study aimed to analyse the current case law of the Court of Justice of the European Union (ECJ) in tax disputes on the basis of the recent legislation of the EU Member States and the applicable international law for the purpose of defining the concept and criteria of lawful tax planning and distinguishing it from aggressive tax planning or criminal tax evasion. The practical goal of the present research is to consider optimal and legitimate tax strategies of companies operating in the EU. The structure of the Thesis is determined by the goal and tasks of the research and includes the introduction, three chapters consisting of paragraphs and sub-paragraphs, the conclusions with eight propositions and the list of sources. The introduction explains the topicality of the research topic, defines its subject and object, determines the degree of scientific development of the theme and outlines the goal of the research. The first chapter investigates taxation in the EU, summarising EU single market and tax harmonisation, with a particular focus on EU tax system in two major areas: customs and indirect taxation, and the competences of EU institutions and the ECJ in the taxation field, specifically in the area of direct tax harmonisation and integrated regulation of the single market. The second chapter provides analysis of tax planning in the EU Member States, specifying the main concepts and identifying the boundaries of legitimate tax planning in the EU law and its interpretation by the ECJ. Particular emphasis is placed on the definition of aggressive tax planning, the presentation of the ECJ’s approach to tax planning issues in court rulings, and to the arrangements of payment of dividends. Schemes of transfer of loss and profit as well as the practice of the ECJ in hearing tax planning cases in the EU Member States in the Baltic region were investigated. Based on the study of the previous two chapters the third chapter provides an in-depth analysis of factors affecting the modern entrepreneurship and tax planning, with a particular focus on anti-money laundering and sanctions legislation of the USA, EU and several other countries. Business secret, the role of mass media and the legislation on “whistleblowers” are demonstrated. Finally, the principle of freedom of establishment in the EU is studied and a scenario analysis of its compatibility with tax planning is carried out. Based on the conducted research, the conclusions are made. For instance, modern entrepreneurship ensures that the concept of tax planning remains strong in both theoretical and practical terms, continually adapting to the changing economy and emerging trends. The main text of the Thesis consists of 154 pages. References contain 191 sources. Also, 12 Figures are included in the Thesis.