Growing Impetus for Harmonization of Personal and Family Allowances: Current State of Affairs of the Schumacker-Doctrine after Imfeld and Garcet

Abstract

By applying the rules of market integration and fundamental freedoms (e.g., the principles of non-discrimination and non-restriction), the CJEU has enforced various elements of the taxpayers’ personal ability to pay taxes that have been denied by Member States in cross-border situations. The CJEU’s Schumacker-doctrine shapes the taking into account of the taxpayer’s personal and family circumstances in the internal market. The article argues that the CJEU’s Schumacker-doctrine still contains a number of inconsistencies and incorrect assumptions, and raises the question whether EU law has to stick to this Schumacker-doctrine or go another way. Whether this issue can be resolved by the CJEU on the basis of existing international tax treaty provisions depends on its case law and the national laws of the Member States, or the possible need for specific EU legislation. The case law of the CJEU in Imfeld and Garcet of 12 December 2013 will be discussed, with an overview of possible tools to refine the taking into account of the taxpayer’s personal and family circumstances. The article concludes that actions on EU level are needed to eliminate double (non-)taking into account of the personal and family circumstances that is the result of the parallel exercises of Member States’ fiscal sovereignty.