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Corporate tax consolidation and enhanced coorporation in the European Union

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Author Info

  • Leon Bettendorf

    ()
    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Albert van der Horst

    ()
    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ruud A. de Mooij

    ()
    (Erasmus University Rotterdam, CPB, Tinbergen Institute, Oxford University Centre for Business Taxation, CESifo)

  • Hendrik Vrijburg

    ()
    (Erasmus University Rotterdam)

Abstract

This article assesses the economic implications of the introduction of consolidation with formula apportionment in the European Union under alternative enhanced cooperation agreements. We fi?nd that the consolidation is likely to yield a small aggregate welfare gain in Europe, but that not all countries benefi?t. A coalition of winning countries reduces the welfare gain and may induce a process of adverse selection which distroys the possibility of cooperation. We fi?nd that a coalition of similar countries (in terms of the size of their multinational sector) is more feasible in achieving agreement and is actually preferred by those countries over a European-wide reform.

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Bibliographic Info

Paper provided by Oxford University Centre for Business Taxation in its series Working Papers with number 1001.

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Date of creation: 2010
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Handle: RePEc:btx:wpaper:1001

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Keywords: Corporate tax harmonization; European Union; CCCTB; Applied General Equilibrium;

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  21. Marcel G�rard, 2006. "Reforming the taxation of multijurisdictional enterprises in Europe: a tentative appraisal," European Economy - Economic Papers 265, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  22. Alfons Weichenrieder & Tina Klautke, 2008. "Taxes and the Efficiency Costs of Capital Distortions," CESifo Working Paper Series 2431, CESifo Group Munich.
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Cited by:
  1. Logica BANICA & Daniela PIRVU & Alina HAGIU, 2011. "Software tool for a Comparative Analysis of Romanian fiscality with other country in European Union," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 10(2), pages 74-88.
  2. Hendrik Vrijburg & Ruud A. de Mooij, 2010. "Enhanced Coorporation in an asymmetric model of Tax Competition," Working Papers 1002, Oxford University Centre for Business Taxation.
  3. Luigi, Bernardi, 2011. "Economic crisis and taxation in Europe," MPRA Paper 31007, University Library of Munich, Germany.
  4. Daniela PÎRVU, 2013. "Twhy Ccctb Disadvantages Less Developed Countries Of The European Union," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 317-332, June.
  5. repec:cmj:journl:y:2013:i:28:pirvud is not listed on IDEAS

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