Tax implications of environmental disasters and pollution

EUCOTAX Series on European Taxation Volume 44

There is little doubt that tax authorities can provide significant relief when
disasters occur, yet there is generally nothing approaching consensus on what
kinds of tax measures are most effective. In most cases the public policy
response remains an ad hoc mix of subsidies, insurance schemes, and tax
relief, with the latter component least defined. This book, however – the
first on this key topic of growing importance – bears witness to the potential
for a global tax framework that can be seen as emerging in international law.

Drawing primarily on CJEU case law and the European Commission’s approach,
twelve well known experts on international tax discuss the various experiences
of several Member States (Germany, Spain, Italy, Austria, France, Portugal,
Hungary, and the Nordic Countries).

The contributors analyse measures of public finance and ‘compensatory’
taxation taken in recent years for geographical areas struck by disasters,
whether naturally caused or due to human error or environmental pollution. The
focus is on EU commitments and policies, with particular regard to the effects
of the so-called prohibition of State aid laid down by Article 107 TFEU. Also
included is a comparative analysis of the relevant Japanese tax regime that
has developed in the wake of the exceptional challenge of the Fukushima
nuclear disaster.

For each national tax system covered, the book examines such issues and topics
as the following: ;

• public finance interventions;
  

• compulsory insurance mechanisms as either complements or alternatives to tax
  relief;
  

• recovery measures vs. development measures;
  

• justifications required for tax development measures in order to obtain
  authorization by the European Commission;
  

• specific advice on tax measures granted to subjects willing to invest in areas
  struck by disaster; and
  

• regulations specific to marine accidents in international waters.