Business Services Industry
European Union court ruling provides new blow to tax autonomy.
Knight Ridder/Tribune Business News, July, 2004
By Allister Heath, Sunday Business, London Knight Ridder/Tribune Business News
Jul. 4--The right of European Union (EU) members to set their own taxes was dealt another blow last week by the European Court of Justice.
EU citizens working temporarily in another member state should have the same tax benefits as nationals, the European Court of Justice ruled. The controversial decision will undermine UK Prime Minister Tony Blair's claim that national governments' powers over tax affairs are not being threatened by the EU.
In a judgment last Thursday, the Luxembourg court said Sweden was wrong to refuse to exempt from Swedish income tax a German citizen spending a few months working for the Church of Sweden.
The Swedes said the...
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