The financial and economic crisis resulted in severe challenges for public finances in many EU Member States. Tax revenue, which had been boosted during the boom years by tax-rich growth and rising asset prices, plummeted as a consequence of the automatic stabilisers inherent in the tax system, a reversal of the revenue windfalls from asset prices and the discretionary measures taken in support of domestic demand. Against this background, this European Commission report analyses tax revenue developments and recent tax reforms in EU Member States.