ПРОЦЕС ЕВРОПСКИХ ИНТЕГРАЦИЈА И БУДУЋНОСТ НАЦИОНАЛНИХ ПОРЕСКИХ СИСТЕМА
The European Integration Process and The Future of National Tax Systems

Summary/Abstract: The establishment of the European Union (EU) has had a huge impact on Europe which has become a substantially different place as compared to what it used to be in some earlier times. In the field of taxation, the EU Member States are generally required to fully implement of the process of tax harmonization. In fiscal terms, harmonization implies the coordination of particular taxes, tax structures and tax policies among states. As the primary objective of the EU is to establish the common market, to prevent distortion and to eliminate obstacles hindering the free movement of goods, services, capital and people, the first step towards accomplishing these goals has been the harmonization of indirect taxes: the Value Added Tax and (partly) excises. The results have been much more inconspicuous in the harmonization of direct taxes: the personal-income tax, the corporate tax, and property taxes. The harmonization of direct taxes in the EU is still a current issue, particularly in wiew of the unfair tax competition and the need to strengthen and promote the development of the European common market. However, in reality, EU Member States consistently keep protecting their tax sovereignty and putting off the full harmonization of their legislation on direct taxes for some other time. In the contemporary circumstances, the activities which deserve undivided attention are the efforts aimed at improving tax cooperation between EU Member States and their tax administrations. In this paper, the author analyses the characteristics of tax harmonization and tax competition. Further on, the author discusses the arguments for and against tax harmonization, as well as the pros and cons of tax competition. Bearing in mind the current state of affairs, the evident problems in the field of tax harmonization at the EU level and the willingness of Member States to improve their tax cooperation, the author suggests possible directions for the development of national tax systems of the EU Member States in the future.

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