1. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw1 Equality before the Law: Large Taxpayers v. Medium and Small Taxpayers

2. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw2 What is the principle of equality about? Aristotle’s dictum  alike cases should be treated alike and unalike cases should be treated unalike

3. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw3 What is the principle of equality about?  Does a tax measure result in different treatment of taxpayers?  Are taxpayers that are treated differently in a comparable situation?  Is there any justification to different treatment if taxpayers are in a comparable situation?  Is an applied tax measure proportionate to the goals it is aiming to achieve?

4. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw4 Questions in relation to…  Model of cooperative compliance as suggested by the OECD.  Selected cooperative compliance programs.

5. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw5 What is different treatment?  Equal access to the program.  No tax base benefits.  Equal application of the law.

6. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw6 No tax base benefits?  Model:  no direct tax base benefits.  Australia:  concessionary treatment of penalties and interest.  Italy:  a 50% haircut on penalties.

7. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw7 Equal application of law?  Model:  Equal application of law. Program as an integral part of compliance risk management.  Austria:  a special contact person designated for the taxpayer.  Australia:  higher levels of accessibility to the tax administration,  not being subject to some other compliance activities (e.g. reportable tax position schedules).  Italy:  a fast track ruling procedure.

8. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw8 Comparability test  How to define large taxpayers to meet comparability test? ModelTaxpayers with the complexity and scale of the affairs which demands different treatment. Austria increased audit obligations (Großbetriebsprüfung) that concerns companies with revenue higher than EUR 9,68 million. Australia taxpayers with turnover levels above $250 million.

9. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw9 Comparability test Italy taxpayers with an annual turnover higher than EUR 10 billion or an annual turnover higher than EUR 1 billion who adhered to the pilot project on cooperative compliance launched by the Italian revenue agency in 2013. The Netherlands (1) listed company at the (Amsterdam) stock exchange and/or (2) standard weighted fiscal worth exceeding EUR 25 million and/or; (3) foreign parent and own standard weighted fiscal worth exceeding EUR 12.5 million ; and/or (4) at least 5 foreign subsidiaries and own standard weighted fiscal worth exceeding EUR 12.5 m.

10. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw10 Justification  Better dialogue with main taxpayers,  Improved tax compliance,  Improved legitimization of taxation,  Better capacity management,  Improved tax risk management,  Greater effectivity and efficiency of the tax administration.

11. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw11 Proportionality  Are benefits obtained by the taxpayer under the cooperative compliance program balanced against goals the program aims to achieve?

12. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw12 Conclusions  Model: a tax measure compatible with the principle of legal equality.  Programs: their compatibility with the principle of legal equality depends on:  Benefits granted,  Definition of taxpayers eligible to participate in the program,  Justification,  Proportionality of benefits with program‘s aims.

13. Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw13 INSTITUTE FOR AUSTRIAN AND INTERNATIONAL TAX LAW Welthandelsplatz 1, 1020 Vienna, Austria Mag. Alicja Majdanska T +43-1-313 36-4402 F +43-1-313 36-730 alicja.majdanska@wu.ac.at www.wu.ac.at/taxlaw