Tax Harmonization in the EU

The paper deals with the problems of tax harmonization in the EU. It is discussed from the tax theory point of view as well as from the view of the tax practice. Several attitudes to tax competition and tax harmonization are discussed, including the tax competition theories. The paper presents several successes which have been achieved in the area of direct tax harmonization and indirect tax harmonization. Harmonization failures are mentioned and discussed as well for they are the integral part of the harmonization process in the European Union. At the end, the possible models of corporate income taxation and its possible impacts on the tax competition in the European Union are discussed as well.