AND DIRECT COSMETICS , WHATEVER THE MOTIVES BEHIND THEM , ARE NOT ONLY LIABLE TO DIMINISH THE REVENUE BUT THEY ALSO AFFECT CONDITIONS OF COMPETITION BETWEEN UNDERTAKINGS OPERATING SUCH METHODS AND THOSE LIABLE TO PAY THE TAX . IT POINTS OUT THAT THE AIMS OF THE VAT SYSTEM ARE CLEARLY STATED IN THE PREAMBLE TO THE FIRST HARMONIZATION DIRECTIVE IN SO FAR AS IT REFERS TO THE ELIMINATION OF FACTORS WHICH MAY DISTORT CONDITIONS OF COMPETITION , WHETHER AT NATIONAL OR COMMUNITY LEVEL , AND STRESSES THE FACT THAT THE HIGHEST DEGREE OF NEUTRALITY OF THE TAX SYSTEM IS ACHIEVED WHEN THE TAX IS LEVIED IN AS GENERAL A MANNER AS POSSIBLE AND WHEN ITS SCOPE COVERS ALL STAGES OF PRODUCTION AND DISTRIBUTION ( FIRST COUNCIL DIRECTIVE ( NO 67/227/EEC ) OF 11 APRIL 1967 ON THE HARMONIZATION OF LEGISLATION OF MEMBER STATES CONCERNING TURNOVER TAXES , OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1967 , P . 14 , THIRD AND FIFTH RECITALS IN THE PREAMBLE ).
18 AS ITS OBSERVATIONS NOW STAND , THE COMMISSION TAKES THE VIEW THAT , SINCE THE MEASURE NOTIFIED IN 1977 BECAME INOPERATIVE OWING TO THE JUDGMENT DELIVERED BY THE COMPETENT TRIBUNAL , IT SEEMS THAT THERE WAS AN ERROR IN THE NOTIFICATION PROCESS AT THAT TIME . CONSEQUENTLY , FAILING NOTIFICATION OF THE NEW LEGISLATIVE MEASURE ENACTED IN 1981 , THERE IS NO VALID DEROGATION UNDER ARTICLE 27 OF THE DIRECTIVE . THE 1981 LEGISLATION INVOLVED A SUBSTANTIAL CHANGE COMPARED WITH THE PREVIOUS LEGAL SITUATION AND FRESH NOTIFICATION WAS THEREFORE REQUIRED . HOWEVER , THE COMMISSION EMPHASIZES THAT , IF A NEW MEASURE HAVING THE SAME SUBSTANCE AS THE 1977 MEASURE HAD BEEN NOTIFIED , IT WOULD NOT HAVE RAISED ANY OBJECTIONS . IT DRAWS PARTICULAR ATTENTION TO THE FACT THAT , SINCE THE UNITED KINGDOM HAS FIXED A RELATIVELY HIGH THRESHOLD FOR THE EXEMPTION PERMITTED BY ARTICLE 24 OF THE DIRECTIVE , IT SEEMS NATURAL THAT PRECAUTIONS SHOULD BE TAKEN ON THE OTHER HAND TO ENSURE THAT CERTAIN FORMS OF MARKETING , SUCH AS THE SCHEME OPERATED BY DIRECT COSMETICS , DO NOT BENEFIT FROM THE EXEMPTION .
19 THE QUESTION RAISED BY THE LONDON TRIBUNAL MUST BE RESOLVED IN THE LIGHT OF THE SCHEME OF ARTICLE 27 OF THE SIXTH DIRECTIVE , THE PROVISIONS OF WHICH MUST NOW BE CONSIDERED .
20 THE FIRST PARAGRAPH OF ARTICLE 27 PROVIDES THAT THE COUNCIL MAY AUTHORIZE ANY MEMBER STATE TO INTRODUCE SPECIAL MEASURES DEROGATING FROM THE PROVISIONS OF THE DIRECTIVE , EITHER IN ORDER TO SIMPLIFY THE PROCEDURE FOR CHARGING THE TAX OR TO PREVENT ' CERTAIN TYPES OF TAX EVASION OR AVOIDANCE ' .
21 PARAGRAPHS ( 2 ), ( 3 ) AND ( 4 ) PROVIDE THAT A MEMBER STATE WISHING TO INTRODUCE THE MEASURES REFERRED TO IN PARAGRAPH ( 1 ) MUST INFORM THE COMMISSION OF THEM AND PROVIDE IT WITH ALL RELEVANT INFORMATION . THE COMMISSION MUST INFORM THE OTHER MEMBER STATES OF THE PROPOSED MEASURES WITHIN ONE MONTH