Management is the coordination and administration of tasks to achieve a goal. Such administration activities include setting the organization’s strategy and coordinating the efforts of staff to accomplish these objectives through the application of available resources. Leadership is the act of guiding a team or individual to achieve a certain goal through direction and motivation. Leaders encourage others to take actions they need to succeed. People often mistake leadership and management as the same thing but in essence, they are very different. The main difference between the two is that leaders have people that follow them, while managers have people who simply work for them. Leadership is about getting people to comprehend and believe in the vision you set for the company and to work with you on achieving your goals, while management is more about administering and making sure the day-day activities are happening as they should.
4.1.1 Vulnerability 1: Cross-border supply of goods and services: creating an environment for abuse in VAT
Due to harmonisation of the VAT system in the EU, there has been a significant increase in cross-border trade. The harmonisation included the creation of cross-border trade which would ensure a significant level of trade in goods and services, thereby lessening the possibility of VAT fraud and abuse of law. The Commission has constantly highlighted the vulnerability of the VAT system and due to the complexity of the 28 jurisdictions engaged in cross-border trade, the EU legislator is faced with a constant challenge of preventing VAT as an environment for abuse or VAT fraud.
4.1.2 Vulnerability 2:
4.2 The fundamental distinction between abuse of law and abuse of rights
In the context of taxation, the CJEU has defined “abuse” as a form of tax minimisation, which through misuse of legal forms achieves a result which is not in compliance with system principles. This means that though tax abuse and tax avoidance are related, they do not coincide.
At this juncture, it is important to note that both abuse of rights and abuse of law are not necessarily the same. Generally speaking, abuse of law indicates abuse in Union law, whereas abuse of rights indicates abuse of Union law. The former may be defined as a situation where a person relies on a European legal right to circumvent or displace national law, while taking advantage of a right in European law, but in a manner running contrary to its spirit constitutes the latter.
In 2006, the CJEU extended the abuse of law principle in the Halifax to apply to the field of VAT. The abstract distinction between both abuse of law and abuse of rights is based on a dictum from Centros, where it was provided that abuse of law involves avoiding national provisions through claiming fundamental freedoms, whereas abuse of rights involves abusing rights directly provided by EU law. According to this dictum, a Member State:
