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Corporate tax consolidation and enhanced cooperation in the European Union

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  • Leon Bettendorf

    ()

  • Albert van der Horst

    ()

  • Ruud de Mooij
  • Hendrik Vrijburg

    ()

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 find that the consolidation is likely to yield a small aggregate welfare gain in Europe, but that not all countries benefit. A coalition of winning countries reduces the welfare gain and may induce a process of adverse selection that reduces the number of participating countries. We find 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 CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 132.

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Date of creation: Nov 2009
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Handle: RePEc:cpb:discus:132

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Cited by:
  1. 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.
  2. repec:cmj:journl:y:2013:i:28:pirvud is not listed on IDEAS
  3. 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.
  4. 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.
  5. Luigi, Bernardi, 2011. "Economic crisis and taxation in Europe," MPRA Paper 31007, University Library of Munich, Germany.

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