Annex to Chapter 9: Recent developments in the European Legal Tax Order

Considerable formal and – to a lesser extent – material changes in the setup of the European Legal Order in recent years have implicated an unchanged need for a European Legal Tax Order. Legislative constitutional developments entailing both the enlargement to 27 Member States and the further consolidation of the Union, first through the failed attempt of a 'Constitutional Treaty', then through the ratification of the Lisbon Treaty, have to be contrasted with a remarkably changed attitude of the Court of Justice regarding negative integration in the area of (direct) taxation, which increasingly focuses on possible justifications for unequal treatment by the Member States. Both areas of recent developments are considered in this contribution. In particular, it is examined whether the Court of Justice has taken any steps towards the ability to pay principle as a basis for a true European Legal Tax Order.