ECHR Litigation as a Tool for Tax Justice in Europe
This chapter examines the prospects for challenging a tax exemption granted to a private company by invoking the prohibition on discrimination in the European Charter on Human Rights (ECHR). For this purpose, it assesses a specific case of tax exemption, allegedly granted to a subsidiary of McDonald's by Luxembourg.Should the Court hold that certain selective tax rulings are a violation of the prohibition of discrimination under the ECHR, this finding would set a powerful precedent to rebut the claim that tax avoidance is “perfectly legal.” Accordingly, the hands-off treatment the international community has afforded tax-avoidance strategies might give rise to state responsibility. Furthermore, to reform international tax policies, it is crucial to understand past practices and whether and why these practices should be considered broken and unjust