Tax Norms as a Regulatory Tool for Competition Improvement in the Financial Sector

Tax Norms as a Regulatory Tool for Competition Improvement
in the Financial Sector

Povilas Gruodis

Vilnius University, Faculty of Law, Lecturer of Public Law Department, Doctor of Social Sciences-Law (Lithuania)

The article analyses the possibility to use regulatory tax norms to regulate competition distortion in the financial sector. Competition distortion in the financial sector is a very actual problem of the Lithuanian financial market. As there is a strong relevance between competition distortion and prudential regulation of the financial sector, the article focuses on the tax norms which can be used for regulatory purposes to ensure competition in the financial sector. Tax norms due to the specific regulatory features might be one of the possible solutions for the legislator on how to regulate competition in the financial market and at the same time not to affect negatively the stability of the financial sector. In the article the examples of the Polish and Lithuanian bank levies are used to prove that the regulatory impact of the tax norms might be significant to the financial market. The main findings of the research are provided in the conclusions.