This lesson delves into the fundamental rights and corresponding obligations of taxpayers. It covers the legal and constitutional protections afforded to taxpayers in the US and Europe, providing a comprehensive view of the taxpayer’s position in the tax system.

• The Legality Principle as a Protective Shield: The principle of legality ensures that taxes are governed by law. Constitutions implement this principle, setting limits for the legislator and creating a protective level for taxpayers’ fundamental rights against arbitrary state action.

• Multi-Level Protection of Taxpayer Rights: Taxpayer rights are founded on three distinct levels:

  • International Level: Includes provisions in bilateral tax treaties (often based on the OECD Model Tax Convention) and human rights instruments like the European Convention on Human Rights (ECHR).

  • European Level: For EU member states, EU law provides additional protection. This includes the fundamental freedoms enshrined in the Treaty on the Functioning of the European Union (TFEU), the EU Charter of Fundamental Rights, and general principles of EU law. The principle of non-discrimination is a key right stemming from the broader principle of equality.

  • National Level: Primarily derived from domestic constitutional provisions and national legislation, including the US Bill of Rights and the taxpayer bill of rights in many countries.

• Impact of Anti-Avoidance Measures: International efforts like the BEPS project and the EU Anti-Tax Avoidance Directive (ATAD) directly impact taxpayers’ rights and obligations. It is critical to assess whether such measures are proportionate to their objectives and whether they restrict taxpayers’ economic rights too extensively.