Head office taxation: Why yellow cards sometimes need a VAR
| Published date | 01 August 2024 |
| DOI | http://doi.org/10.1177/1023263X241305457 |
| Author | Raymond Luja |
| Date | 01 August 2024 |
| Subject Matter | Editorial |
Head office taxation:
Why yellow cards sometimes
need a VAR
Raymond Luja*
When watching the 2024 Paris Olympic Games this author was surprised to learn that the video
assistant referee (VAR) had found its way into several new sports quite recently. Sometimes, a
VAR review can lead to a penalty, like a yellow card. In the European Union, a yellow card pro-
cedure exists as well. If a sufficient number of national parliaments decides to draw a yellow card,
the European Commission should review whether its draft proposal for EU legislation respects the
principle of subsidiarity before continuing with the legislative process.
1
However, allowing just
eight weeks to draw a yellow card based on an initial perception does not always work well.
One of the problems with the European Union’s yellow card procedure is that national parliaments
do not have the luxury of involving a VAR to look back during a legislative procedure and then
draw a card before the game is over.
Head office taxation
In 2023, the European Commission launched its head office taxation proposal.
2
Its acronym ‘HOT’
is rather appropriate, because both the European Union and its Member States may be burning their
fingers on something that can easily get out of control.
The idea was that smaller incorporated companies and partnerships may opt to have their activ-
ities in another Member State taxed in accordance with the familiar tax rules applicable to their head
office. For example, a French incorporated company with its head office in Paris but also active in
*
Maastricht University, Maastricht, Netherlands
Corresponding author:
Raymond Luja, Maastricht University, Maastricht, Netherlands.
Email: raymond.luja@maastrichtuniversity.nl
1. Article 5 TEU and Article 7(2) Protocol (No. 2) on the Application of the Principles of Subsidiarity and Proportionality.It
also applies to other initiators.
2. Proposal for a Council Directive establishing a Head Office Tax system for micro, small and medium sized enterprises,
Editorial
Maastricht Journal of European and
Comparative Law
2024, Vol. 31(4) 465–468
© The Author(s) 2024
Article reuse guidelines:
sagepub.com/journals-permissions
DOI: 10.1177/1023263X241305457
maastrichtjournal.sagepub.com
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