Abstract
Can the EU influence the taxation policies of member states? Most EU scholars finds that the answer to this question is `no'. This study explores the idea that maybe it can, by conducting a case study of a most likely case for EU influence on taxation: Cyprus. The paper examines EU influence on the taxation policies of Cyprus in the period from 2002 to 2013. During this period, Cyprus were involved in two major negotiations with the EU: the EU accession process leading up to accession in 2004 and the negotiations following their 2012 application for financial support under the European Stability Mechanism. The paper finds that both these negotiations led to transformation of policies on taxation and transparency in Cyprus under EU influence. The negotiations gave `teeth' to soft law instruments on tax and transparency promoted by the EU.