Indirect taxation calls for a high degree of harmonization as it affects the free movement of goods and services. This is not the case for direct taxation, which is why the Treaty establishing the European Community (EC Treaty) does not make specific provision for the alignment of direct taxation. Some aspects of direct taxation do not need to be harmonized or coordinated and are left entirely to the discretion of the Member States. The situation is somewhat different when direct taxation has an impact on the four freedoms enshrined in the EC Treaty (free movement of goods, persons, services and capital) and the right of establishment of persons and businesses. National taxation systems must respect these four fundamental freedoms. However, direct taxation systems have never been harmonized in the Community.