THE IMPACT OF TAX COMPETITION AND HARMONISATION IN THE EU IN RELATION TO FISCAL OPTIMISATION

Fiscal competition and harmonisation are topical issues and the controversy generated by preferences for one or the other is due to the effects they generate in the economies of the EU member states. The practice of tax competition to a smaller or larger extent by some of the Member States is often identified with tax optimisation practices. Thus, in the economies of developed or emerging countries, the effects are both on the labour market, in the collection of indirect taxes (VAT or excise duties), but also in the transfer of profits versus transfer prices. The European fora are working hard for the uniformity of European legislation, but also to determine the governments of the Member States to apply the legislation adopted at European level in their national legislation. The European Commission's legislative perspectives are included in the EU's fiscal policy strategy, which is explained in the Commission's Communication entitled “Taxation Policy within the European Union – Priorities for Future Years”, focus on the main priorities of the EU's fiscal policy, as follows: removing tax barriers that hamper cross-border economic activity, the fight against harmful tax competition and tax evasion, wider promotion of collaboration between financial administrations, in order to control and combat fraud. In line with the established objectives, it is suggested that greater fiscal policy coordination would ensure the support of wider EU policy objectives through fiscal policies of the Member States as set out in the Europe 2020 Strategy for smart, sustainable and inclusive growth and in the single market act