Judgment_paragraph 27 · Commission of the European Communities v French Republic (C-334/02)

27The latter relies on the need to ensure payment of taxes and effective fiscal supervision. It is true that the Court has repeatedly held that the prevention of tax avoidance and the need for effective fiscal supervision may be relied upon to justify restrictions on the exercise of fundamental freedoms guaranteed by the Treaty (see Case C-254/97 Baxter and Others [1999] ECR I-4809, paragraph 18, and Commission v Belgium, cited above, paragraph 39). However, a general presumption of tax avoidance or fraud is not sufficient to justify a fiscal measure which compromises the objectives of the Treaty (see, to that effect, the judgment in Commission v Belgium, cited above, paragraph 45).