Justice, Equality and Tax Law

S. 261. Introduction

There is widespread, though not universal, agreement that fair taxation should be based on the taxpayer’s “ability-to-pay”, or ability to bear the tax burden. This study will deal with the concept of the ability-to-pay principle in a legal and axiological way, i.e. how it is connected to the concept and values of justice and fairness (Section 2.1.). The ability-to-pay principle is derived from the principle of equality; it is also considered to be a general principle of law on which the national taxation system is to be based in order to have a fair allocation of tax as per the paying capacity of the taxpayer.

Further, after the analysis of the theoretical background of the ability-to-pay principle, the application of the ability-to-pay principle at the international and EU level will be evaluated (Sections 2.2.–2.3.). The operation of the ability-to-pay principle in the international realm is done separately for legal entities/corporations and natural persons/individuals. Further, the ability-to-pay principle is analysed in light of different political ideologies in order to determine which approach best suits the normative review. In addition, the study will determine whether t...