Revisiting “Schumacker”: Source, Residence and Citizenship in the ECJ Case Law on Direct Taxation

2013

ECJ case law on direct taxation has been very important in the development of the international dimension of direct tax systems of EU Member States. Through the application of the non-discrimination principle and the requirements of the fundamental freedoms, some of the basic structures of the implementation of income tax systems have been revised to accommodate to the needs of the single market. However, the requirements of the EU single market are fundamentally incompatible with the assumptions that have served to build the criteria under which modern income tax systems have been developed (worldwide income taxation, residence vs source, unlimited vs limited tax liability, credit vs exemp…