The government has published a call for evidence on the balance of competence between the United Kingdom and the European Union on taxation.

The term 'competence' is used to describe the powers, conferred on the EU by the member states, to undertake specific actions. The EU's competences are set out in the EU Treaties, which provide the legal basis for any actions taken by the EU institutions. The EU can only act within the limits of the competences conferred on it by the Treaties.

The foreign secretary William Hague launched the Balance of Competence Review in Parliament on 12 July 2012 to examine the balance of competences between the UK and the EU.

The Treasury is leading on the strand of the review covering taxation and is seeking views from individuals and groups with an interest or experience in taxation policy and its application on how the competence is used and what that means for the UK.

The public call for evidence on taxation will run for 12 weeks from 26 November 2012 to 18 February 2013. Following the call for evidence, a report on the current balance of competence on taxation and what this means for the national interest will be published by summer 2013.

The Balance of Competences Review will provide an analysis of what the UK's membership of the EU means for the UK national interest. It will not produce specific recommendations and will not prejudge future policy, nor will it look at alternative models for Britain's overall relationship with the EU.