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Exit Taxation of Individuals vs. the Free Movement of Persons - Examination by means of the German exit tax provision for individuals § 6 AStG and the CJEU’s case law

Hartlaub, Carmen Hiltrud LU (2025) HARN60 20251
Department of Business Law
Abstract
While an exit tax regime satisfies principles like fiscal sovereignty, fiscal territoriality, source and benefit as well as it can find justification in them at a national level, other conflicting issues arise. For instance, from the perspective of an
individual, this can lead to double taxation when the Host State does not accept a step-up or deduction for the value on which taxes have already been paid. Within the EU legal framework, exit taxation collides with the fundamental freedoms and can be identified as discriminatory, restrictive and/or disproportionate. The CJEU’s case law exemplifies this, forming the basis for this thesis’s analysis in conjunction with legal principles and foundations.

Using the example of the German exit... (More)
While an exit tax regime satisfies principles like fiscal sovereignty, fiscal territoriality, source and benefit as well as it can find justification in them at a national level, other conflicting issues arise. For instance, from the perspective of an
individual, this can lead to double taxation when the Host State does not accept a step-up or deduction for the value on which taxes have already been paid. Within the EU legal framework, exit taxation collides with the fundamental freedoms and can be identified as discriminatory, restrictive and/or disproportionate. The CJEU’s case law exemplifies this, forming the basis for this thesis’s analysis in conjunction with legal principles and foundations.

Using the example of the German exit taxation for individuals, this thesis seeks to answer whether the different treatment between emigrants and non-emigrants resulting from the German exit taxation of individuals (§ 6 ‘AStG’) complies with the free movement of persons. Thereby, it delineates clashing forces and identifies which predominate for what reasons by conducing the compatibility test. Although the fundamental freedoms are not absolute, the examination in form of the discrimination and restriction approach demonstrates that the free movements of persons cannot be overruled by tax avoidance or the balanced allocation of taxing rights alongside the specific provisions’ conditions. (Less)
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author
Hartlaub, Carmen Hiltrud LU
supervisor
organization
course
HARN60 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
Individual’s exit taxation, free movement of persons, fiscal territoriality, fiscal sovereignty, tax avoidance, balanced allocation of taxing powers, benefit principle, source principle.
language
English
id
9192651
date added to LUP
2025-06-05 10:40:04
date last changed
2025-06-05 10:40:04
@misc{9192651,
  abstract     = {{While an exit tax regime satisfies principles like fiscal sovereignty, fiscal territoriality, source and benefit as well as it can find justification in them at a national level, other conflicting issues arise. For instance, from the perspective of an
individual, this can lead to double taxation when the Host State does not accept a step-up or deduction for the value on which taxes have already been paid. Within the EU legal framework, exit taxation collides with the fundamental freedoms and can be identified as discriminatory, restrictive and/or disproportionate. The CJEU’s case law exemplifies this, forming the basis for this thesis’s analysis in conjunction with legal principles and foundations.

Using the example of the German exit taxation for individuals, this thesis seeks to answer whether the different treatment between emigrants and non-emigrants resulting from the German exit taxation of individuals (§ 6 ‘AStG’) complies with the free movement of persons. Thereby, it delineates clashing forces and identifies which predominate for what reasons by conducing the compatibility test. Although the fundamental freedoms are not absolute, the examination in form of the discrimination and restriction approach demonstrates that the free movements of persons cannot be overruled by tax avoidance or the balanced allocation of taxing rights alongside the specific provisions’ conditions.}},
  author       = {{Hartlaub, Carmen Hiltrud}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Exit Taxation of Individuals vs. the Free Movement of Persons - Examination by means of the German exit tax provision for individuals § 6 AStG and the CJEU’s case law}},
  year         = {{2025}},
}