The European Parliament is currently investigating harmful tax competition between EU Member States following the publication of the 'LuxLeaks'. In order to prepare the report of the special committee TAXE 2, the European Parliament commissioned in-depth studies on harmful tax competition. One of the studies was the on the influence of EU Law on Taxation in the EU Member States' Overseas Territories and Crown Dependencies. The European Research Centre for Economic and Financial Governance (EURO-CEFG) got successfully selected to write this study.
Wessel Geursen, expert in the field, draft the study under the lead of EURO-CEFG. The study was very much welcomed by the European Parliament. The legal study researches the influence on tax law and practice in the overseasareas of the Member States by state aid rules, secondary EU tax law and the
Overseas Association Decision. The state aid rules and secondary EU tax law apply to the outermost Regions, Gibraltar and the Åland Islands and not to the Overseas Countries and Territories and the Crown Dependencies, although the Savings Directive applies atypically. An amendment of the Overseas Association Decision might provide a solution.