The Concept of ‘Abuse of Law’ in the Case Law of the European Court of Justice on Direct Taxation

Abstract

Time and again, the Court of Justice has made clear that EU law does not protect natural or legal persons who seek to pay less tax by creating situations that artificially fall within the scope of application of the fundamental freedoms. In the light of the judgments of the Court of Justice in Cadbury Schweppes, Thin Cap and Glaxo Wellcome, this contribution describes the steps that a national court must follow when determining whether a particular behaviour constitutes an abuse of law in the field of direct taxation.