R.J.D. Brakel - The allocation of taks autonomy in the Netherlands - Circulaire

The allocation of taks autonomy in the Netherlands

The decentralization of tax autonomy is a concept that has been around for centuries. The last decades, a trend is developing that favors decentralisation. This raises the important question which determinants are important for an optimal allocation of tax autonomy.

From an economic perspective, tax autonomy should be efficiently allocated while legal principles demand certain outcomes which might be in conflict with the economic perspective. Therefore, an optimal allocation of tax autonomies is one that balances economic efficiency with compliance to legal principles. This results in the central question of this thesis: “Is the current allocation of tax autonomy of propertyrelated taxes optimal, and what measures could improve the efficiency of taxation?”.

This thesis identifies and outlines conflicts in both domestic and international situations. A comparison with EUCOTAX countries provides insights which, either a contario or by analogy, are applicable on the Dutch system. Furthermore, size and constitutional structure have been identified to have an impact on tax autonomy allocation which should be taken into account when proposing revised tax autonomy allocation.