TAXATION : COMMISSION TACKLES TAX DISCRIMINATION AGAINST MOBILE CITIZENS.

• Position: European Commission

The European Commission announced, on 20 January, the launch of an 'in-depth investigation' into member states' tax regimes to determine whether they discriminate against 'mobile citizens' in the EU. The investigation will continue throughout 2014 and could ultimately lead to infringement procedures.

"EU rules are clear: all EU citizens must be treated equally within the single market. There cannot be discrimination, and workers' right to free movement must not be impaired. It is our duty to citizens to ensure that these principles are reflected in practice in all member states' tax rules," said Taxation Commissioner Algirdas Semeta.

By launching this initiative at a time when the debate on the right to freedom of movement has caused controversy in several countries (particularly the UK), the Commission has presented a counter-argument, commentators say. It also repeats in its communication that worker mobility is one of the key factors allowing for growth in Europe. In the fifteen 'old' member states, it is estimated that in the long term, EU growth towards the South will lead to an increase of one percent of GDP.

The Commission's investigation will examine the situation of workers - both employees and independents - as well as retired people who exercise their right to freedom of movement within the EU. It will try to establish whether exercising this right creates tax...