Hierarchical connection in the system of sources of EU tax law

Abstract

The article examines the hierarchical structure of the EU legal sources system and the interconnections between them, with a particular focus on tax law. It explores the institutionalization of values within the European legal system and the mechanisms through which these values are codified and implemented. The study emphasizes the necessity of properly incorporating EU legal norms into the national tax legislation of member states to ensure the uniform application of harmonized tax rules. Special attention is given to the pursuit of systematization and structuring in tax law, which is an indication of the advanced development of the EU’s legal system. The importance of EU tax law sources is described, as they form a hierarchically organized structural-functional model. Specifically, the sources of EU tax law, as external forms of expression of tax-legal norms, are quite diverse in both quantity and content, and together they constitute a structurally functional system based on hierarchical principles, which is determined by the corresponding structure of EU law. A key aspect of the analysis is the classification of EU legal sources into primary and secondary law, highlighting their hierarchical relationship. The research emphasizes that while primary sources, such as the founding treaties, establish the constitutional foundation of the EU legal system, secondary sources – comprising regulations, directives, and decisions – serve as instruments for legislative implementation. However, the diversity of normative acts within the EU legal order, including the influence of international treaties and judicial precedents, introduces complexities in determining the exact hierarchy of legal sources. The article further explores the coexistence of multiple tax-legal systems, including the supranational EU tax system, national tax regimes of Member States, and regulatory acts at the local government level. It examines the dialectical tension between the principles of fiscal solvency and tax fairness, emphasizing the necessity of legal compromise in resolving conflicts between collective economic interests and individual rights. The study concludes that the evolving nature of EU tax law requires a flexible and adaptive legal framework capable of mediating between competing interests while ensuring legal certainty and coherence within the broader EU legal system.