IDEAS home Printed from https://ideas.repec.org/a/sae/treure/v16y2010i1p23-28.html
   My bibliography  Save this article

Corporate income tax coordination in the European Union

Author

Listed:
  • Michael P. Devereux

    (Oxford University Centre for Business Taxation, Michael.Devereux@sbs.ox.ac.uk)

  • Clemens Fuest

    (Oxford University Centre for Business Taxation)

Abstract

The globalisation of economic activity and the growing importance of multinational corporations have far-reaching consequences for national tax policies. Since 1995, the average corporate tax rate in the EU has fallen from 35% to 23%. In addition, differences and incompatibilities between the national systems of corporate income taxation distort investment, complicate the tax system and give rise to conflicts between taxpayers and tax authorities as well as between tax authorities of different countries. Given this, there is a widespread view that greater coordination of corporate taxation is required. Recently, the European Commission proposed introducing a Common Consolidated Corporate Tax Base (CCCTB) in Europe. This article discusses the economic advantages and the drawbacks of the CCCTB concept.

Suggested Citation

  • Michael P. Devereux & Clemens Fuest, 2010. "Corporate income tax coordination in the European Union," Transfer: European Review of Labour and Research, , vol. 16(1), pages 23-28, February.
    • Handle: RePEc:sae:treure:v:16:y:2010:i:1:p:23-28
    DOI: 10.1177/1024258909357699
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1024258909357699
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1024258909357699?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Clemens Fuest, 2008. "The European Commission's proposal for a common consolidated corporate tax base," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(4), pages 720-739, winter.
    2. European Commission, 2001. "Annex to Company Taxation in the Internal Market," Taxation Studies 0006, Directorate General Taxation and Customs Union, European Commission.
    3. European Commission, 2001. "Company Taxation in the Internal Market," Taxation Studies 0005, Directorate General Taxation and Customs Union, European Commission.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Streif, Frank, 2015. "Tax competition in Europe: Europe in competition with other world regions?," ZEW Discussion Papers 15-082, ZEW - Leibniz Centre for European Economic Research.
    2. Carpentieri, Loredana & Micossi, Stefano & Parascandolo, Paola, 2019. "Overhauling corporate taxation in the digital economy," CEPS Papers 25090, Centre for European Policy Studies.
    3. repec:spo:wpecon:info:hdl:2441/5283 is not listed on IDEAS
    4. Stefano Micossi & Paola Parascandolo & Barbara Triberti, 2003. "Efficient Taxation of Multi-national Enterprises in the European Union," Bruges European Economic Policy Briefings 5, European Economic Studies Department, College of Europe.
    5. Veronika Solilová, 2012. "Small and medium sized enterprises (SMEs) and transfer pricing," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(2), pages 349-356.
    6. Huizinga, Harry & Laeven, Luc, 2008. "International profit shifting within multinationals: A multi-country perspective," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1164-1182, June.
    7. Deborah Knirsch & Rainer Niemann, 2008. "Deferred Shareholder Taxation -- Implementing a Neutral Business Tax in the European Union," Accounting in Europe, Taylor & Francis Journals, vol. 5(2), pages 101-125, December.
    8. Matthias Wrede, 2009. "Multinational Capital Structure and Tax Competition," MAGKS Papers on Economics 200934, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    9. Åsa Hansson & Susan Porter & Susan Williams, 2015. "The importance of the political process on corporate tax policy," Constitutional Political Economy, Springer, vol. 26(3), pages 281-306, September.
    10. Barrios, Salvador & d'Andria, Diego & Gesualdo, Maria, 2020. "Reducing tax compliance costs through corporate tax base harmonization in the European Union," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    11. Matthias Wrede, 2014. "Asymmetric tax competition with formula apportionment," Letters in Spatial and Resource Sciences, Springer, vol. 7(1), pages 47-60, March.
    12. Fernando M. M. Ruiz, 2006. "Convergence de l'impôt sur les sociétés dans l'Union E uropéenne," Economie & Prévision, La Documentation Française, vol. 0(2), pages 79-96.
    13. Henri Sterdyniak, 2003. "Les réformes fiscales en Europe, 1992-2002," Revue de l'OFCE, Presses de Sciences-Po, vol. 87(4), pages 337-407.
    14. Keuschnigg, Christian & Loretz, Simon & Winner, Hannes, 2014. "Tax Competition and Tax Coordination in the European Union: A Survey," Economics Working Paper Series 1427, University of St. Gallen, School of Economics and Political Science.
    15. Spengel, Christoph & Heckemeyer, Jost Henrich & Nusser, Hannah & Klar, Oliver & Streif, Frank, 2016. "The impact of tax planning on forward-looking effective tax rates," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, volume 64, number 148155, September.
    16. Reister, Timo & Spengel, Christoph & Finke, Katharina & Heckemeyer, Jost Henrich, 2008. "ZEW Corporate Taxation Microsimulation Model (ZEW TaxCoMM)," ZEW Discussion Papers 08-117, ZEW - Leibniz Centre for European Economic Research.
    17. Johannes Becker & Clemens Fuest, 2012. "The Nexus of Corporate Income Taxation and Multinational Activity," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(3), pages 231-251, September.
    18. Matthias Wrede, 2013. "Multinational Financial Structure and Tax Competition," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 149(III), pages 381-404, September.
    19. Cassette, Aurélie & Di Porto, Edoardo & Foremny, Dirk, 2012. "Strategic fiscal interaction across borders: Evidence from French and German local governments along the Rhine Valley," Journal of Urban Economics, Elsevier, vol. 72(1), pages 17-30.
    20. Hansson, Åsa & Porter, Susan & Perry Williams, Susan, 2012. "The Effect of Political and Economic Factors on Corporate Tax Rates," Working Paper Series 942, Research Institute of Industrial Economics.
    21. repec:hal:wpspec:info:hdl:2441/5283 is not listed on IDEAS
    22. Christoph Spengel & Sebastian Lazar & Lisa Evers & Benedikt Zinn, 2012. "Reduction of the effective corporate tax burden in Romania 1992--2012 and Romania's current ranking among the Central and Eastern European EU member states," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 477-502, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:treure:v:16:y:2010:i:1:p:23-28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.