Tax competition

All over the world, national budgets compete for the taxpayers' assessment bases. In the process, rules of conduct are increasingly emerging that differentiate between fair and unfair tax competition. High-tax countries and low-tax countries are addressed equally. Tax competition has a desirable influence on government spending. However, an erosion of the national budget should be avoided.
Extremely low assessment bases and tariffs or extremely high exemptions and concessions are therefore considered unfair. This situation can be aggravated by preferential treatment of individual addressees or by a lack of transparency and control. Unreflective, unrestrained tax competition can prevent the creation of a coordinated, appropriate tax structure in the Member States.

Allerdings darf ein Code of Conduct das höherrangige Prinzip der europäischen und globalen Freizügigkeit nicht wesentlich beeinträchtigen. In diesem Rahmen kann ein Steuerwettbewerb zu einer Angleichung der Steuersysteme beitragen.

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