The relationship between the rule of law and Tax law has been little systematically explored by legal scholars; its relevance in the relationship between International, EU and National legal systems is even less so. Hence the need for a more in-depth analysis of a topic difficult to be theoretically systematized, but which has major, concrete and evident practical implications on citizens’ everyday life.

An analysis of the relationship between rule of law and Tax Law must be necessarily anticipated by a preliminary investigation on the meaning of the rule of law. It is undisputed that the importance of this legal concept is recognized worldwide. Western legal civilization – and not only – has always considered the rule of law as a pillar of its institutional architecture and its observance is unanimously considered as an index of the legitimacy of government power. Nonetheless, although it may seem paradoxical, the unanimous consensus on the role it plays in the protection of the rights and the freedoms of citizens is not matched by a globally shared legal definition. Even today, it is still difficult to attribute a meaning to the formula that is not ambiguous or controversial. 

It will therefore be essential to examine, first of all, the historical and philosophical reasons behind this ambiguity; then to dwell on the systematisation of the concept in the sphere of legal dogmatics, on the development of the Rule of Law in the most relevant legal traditions, and on the elements that the various legal theories attributed to the Rule of Law, including the relative differences between them; to focus, finally, on the role it plays in the context of General International law and of the most relevant supranational organisations, including the European Union.

This reconstruction is preparatory to the heart of the module, namely the application of the rule of law in the National legal tax systems, concentrating on how this is influenced supranationally and, in particular, by EU Law.

From a tax law perspective, the rule of law is a benchmark of political legitimacy, and should inspire the whole body of tax law, tax trial and tax procedures.  

Rule of law embodies the core values of fair trial, equality, legal certainty, predictability, legitimate expectation, prohibition of arbitrariness of executive power, ne bis in idem, principle of respect for the rights of the defense, right to be heard, right to good administration, access to the file. 

As known, taxation is characterized by the absence of a common tax policy at European level. The EU does not have a direct role in collecting taxes or setting tax rates.

Tax sovereignty, although mainly maintained at national level, must be exercised in accordance with the primacy of European law, which has a profound impact on the choices of the legislator in tax matters. Although taxation does not as such fall within the purview of the Union, the powers retained by the Member States must nevertheless be exercised consistently with Union law. Primary and secondary EU law have a considerable influence on the national tax systems of EU Member States. The latter, while retaining their sovereignty at the level of national law and international conventions, must exercise it in accordance with the primacy of EU law(1).

European Commission seek to establish a system of fair taxation(2). As recently noted, fair taxation is central to the EU’s social and economic model and its sustainability. It is essential for sustainable revenues, a competitive business environment and overall taxpayer morale. It is crucial to meet some of the EU’s core objectives, including a just society, a strong Single Market with sustainable revenues, a level-playing field for all companies, and a stable economy built on growth, jobs and investment(3).

However, it is also evident that a fair and sustainable tax system cannot be achieved if the basic principles of rule of law are not observed.

System of fair taxation is challenged by complexity of national legislations, frequent changes, different interpretations and lack of harmonization. 

The national tax legislator, when protecting fundamental rights, has to check the compatibility of legislation at three levels, with constitutional principles, the European Convention on Human Rights and EU law. Hence, the module will start with an analysis of the principles of international tax law and then focus on European principles and their impact on the national context.

The protection of taxpayers’ rights, according to the principles of the rule of law, is an aspect that is still little investigated(4). Taxpayers are often still treated as mere objects in the exercise of State sovereignty.

A balance has to be achieved between the State’s interest in collecting taxes and the protection of the fundamental rights of individuals, between tax sovereignty and the effective protection of taxpayers, which has so far remained at the level of individual States.

The Court of Justice of the European Union (CJEU) is recently increasingly active affirming several general principles of EU law concerning the protection of taxpayers’ rights, addressing the problems arising from the impact of the rights and of the principles contained in the Charter of Fundamental Rights of the European Union (CFREU) on tax matters, with particular reference to tax procedure and tax trial.

In the European Union, integration in tax matters takes place according to the logic of the principle of equivalence, which focuses on the “administrative” interest in the prompt collection of taxes, while neglecting other values traditionally underlying the tax phenomenon (respect for individual rights, equality, ability to pay, etc.).

The module aims to address these issues in order to demonstrate that rule of law principles applied to taxation matters can lead to greater European integration. The rule of law could adequately respond to these critical issues involving the taxpayer’s rights, ensuring a balance between the demands at stake. In this way, a virtuous dynamic could be established, capable of giving new impetus to the process of European integration.

There is still room for future developments in the protection of taxpayers’ rights, in line with the rule of law and its role in in the protection of the rights and of the freedoms of citizens, as part of acquis of the European principle in tax legislation. 

An in-depth analysis of these issues will help to stimulate the debate towards further harmonisation of tax systems, generating knowledge and insights that can support EU policy-making and strengthen the role of the EU in a globalised world.

The study of the issues identified and the dissemination of the results will help to spread the idea that the European Union is helping to provide greater protection for taxpayers. In this way, the academic debate will contribute to reinforces the idea that the fundamental values of the European Union contain the core of protection of taxpayers’ rights, enhancing public trust in tax and spontaneous compliance to fiscal obligations.

This module aims to contribute to the development of quality learning, bringing the fiscal studies to a further dimension into the more traditional settings of the Department and Faculty. Students are expected to become more aware of the legal tax system both at national and supranational level. Once acquired the fundamental theoretical notions, they will be involved in workshops and the yearly congress, together with the teaching staff to guarantee and foster a new teaching approach that goes behind the traditional role and space of the faculty. 

The theoretical background and the subsequent debate will be guided by a group of elevated profile and tailored for students interested in improving their knowledge of the judicial aspect of fiscal system, providing a good starting point for broadening the boundaries of the field of Tax studies. The module will have an important impact both on the students and on the academic offer as it promotes a new awareness of the current situation and the future tax law.