IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2018y2018i1id1177p78-98.html
   My bibliography  Save this article

Výnosový potenciál společného konsolidovaného korporátního základu daně v Evropské unii
[Revenue Potential of the CCCTB in the European Union]

Author

Listed:
  • Veronika Solilová
  • Danuše Nerudová

Abstract

The non-existence of a link between reaching smart, sustainable and inclusive growth and the EU budget is resulting in the existence of sustainability gaps in the European Union. This research reveals that the introduction of the Common (Consolidated) Corporate Tax Base (hereinafter as C(C)CTB) could be an important contribution to close the existing sustainability gaps. To research the revenue potential of the C(C)CTB, a model based on a remittance system was designed. The system expects the replacement of the VAT-based own resource (resp. GNI-based own resource) through the transfer of a part of the corporate tax revenues from the C(C)CTB raised on the national level to the EU budget. The results of the research show that the C(C)CTB-based own resource would be able to fully replace the VAT-based own resource, with the only exception of Cyprus. However, the C(C)CTB-based own resource cannot be considered to be a sufficient resource to fully replace the GNI-base own resource.

Suggested Citation

  • Veronika Solilová & Danuše Nerudová, 2018. "Výnosový potenciál společného konsolidovaného korporátního základu daně v Evropské unii [Revenue Potential of the CCCTB in the European Union]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(1), pages 78-98.
    • Handle: RePEc:prg:jnlpol:v:2018:y:2018:i:1:id:1177:p:78-98
    DOI: 10.18267/j.polek.1177
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1177.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1177.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.1177?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. Roggeman & I. Verleyen & P. Van Cauwenberge & C. Coppens, 2012. "An Empirical Investigation into the Design of an EU Apportionment Formula Related to Profit Generating Factors," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/813, Ghent University, Faculty of Economics and Business Administration.
    2. Albert van der Horst & Leon Bettendorf & Hugo Rojas-Romagosa, 2007. "Will corporate tax consolidation improve efficiency in the EU?," CPB Document 141, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Clemens Fuest & Friedrich Heinemann & Martin Ungerer, 2015. "Reforming the Financing of the European Union: A Proposal," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 50(5), pages 288-293, September.
    4. Margit Schratzenstaller & Alexander Krenek, 2016. "Sustainability-oriented EU Taxes:The Example of a European Carbon-based Flight Ticket Tax," WIFO Studies, WIFO, number 58888, Juni.
    5. Iain Begg & Henrik Enderlein & Jacques Le Cacheux & Mojmir Mrak, 2008. "Financing of the European Union Budget," Working Papers hal-03459814, HAL.
    6. repec:hal:wpspec:info:hdl:2441/10059 is not listed on IDEAS
    7. Margit Schratzenstaller & Alexander Krenek & Danuše Nerudová & Marian Dobranschi, 2016. "EU Taxes as Genuine Own Resource to Finance the EU Budget – Pros, Cons and Sustainability-oriented Criteria to Evaluate Potential Tax Candidates," WIFO Studies, WIFO, number 58887, Juni.
    8. Clemens Fuest & Thomas Hemmelgarn & Fred Ramb, 2007. "How would the introduction of an EU-wide formula apportionment affect the distribution and size of the corporate tax base? An analysis based on German multinationals," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(5), pages 605-626, October.
    9. Philippe Cattoir, 2004. "Tax-based EU own resources: an assessment," Taxation Papers 1, Directorate General Taxation and Customs Union, European Commission, revised Apr 2004.
    10. Cobham, Alex & Loretz, Simon, 2014. "International Distribution of the Corporate Tax Base: Implications of Different Apportionment Factors under Unitary Taxation," Working Papers 11176, Institute of Development Studies, International Centre for Tax and Development.
    11. Michael P Devereux & Simon Loretz, 2008. "Increased efficiency through consolidation and formula apportionment in the European Union?," Working Papers 0812, Oxford University Centre for Business Taxation.
    12. Margit Schratzenstaller, 2013. "The EU own resources system — Reform needs and options," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 48(5), pages 303-313, September.
    13. repec:hal:spmain:info:hdl:2441/10059 is not listed on IDEAS
    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. Jorge Núñez Ferrer & Jacques Le Cacheux & Giacomo Benedetto & Mathieu Saunier & Fabien Candau & Claude Emonnot & Florence Lachet-Touya & Jorgen Mortensen & Aymeric Potteau & Igor Taranic, 2016. "Study on the potential and limitations of reforming the financing of the EU budget [Perspectives et limites pour réformer le financement du budget de l’UE]," Working Papers hal-01848029, HAL.
    2. Kateřina Krchnivá & Danuše Nerudová, 2015. "The Influence of Allocation Formula on Generation of Profit in Different Economy Sectors," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 1961-1967.
    3. Margit Schratzenstaller, 2017. "The Next Multiannual Financial Framework (MFF), its Structure and the Own Resources," WIFO Studies, WIFO, number 60722, Juni.
    4. Jorge Núñez Ferrer & Jacques Le Cacheux & Giacomo Benedetto & Mathieu Saunier & Fabien Candau & Claude Emonnot & Florence Lachet-Touya & Jorgen Mortensen & Aymeric Potteau & Igor Taranic, 2016. "Study on the potential and limitations of reforming the financing of the EU budget
      [Perspectives et limites pour réformer le financement du budget de l’UE]      ," Working Papers hal-01848029, HAL.
    5. Alexander Krenek & Mark Sommer & Margit Schratzenstaller, 2019. "Sustainability-oriented Future EU Funding. A European Border Carbon Adjustment," WIFO Working Papers 587, WIFO.
    6. Alexander Krenek & Mark Sommer & Margit Schratzenstaller, 2021. "A WTO-compatible Border Tax Adjustment for the ETS to Finance the EU Budget," WIFO Working Papers 596, WIFO.
    7. Danuse NERUDOVA & Katerina KRCHNIVA, 2016. "Tax sharing under the Common Consolidated Corporate Tax Base: Measurement of the profit generating factors in the agriculture sector," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(8), pages 363-377.
    8. Jochen Hundsdoerfer & Julia Wagner, 2020. "How accurately does the CCCTB apportionment formula allocate profits? An evaluation of the European Commission proposal," Journal of Business Economics, Springer, vol. 90(4), pages 495-536, May.
    9. Margit Schratzenstaller & Alexander Krenek, 2016. "Sustainability-oriented EU Taxes:The Example of a European Carbon-based Flight Ticket Tax," WIFO Studies, WIFO, number 58888, Juni.
    10. Răzvan V. BALABAN, 2021. "Case study: The impact on the Romanian State Budget in the case of EU adoption of the CCCTB Directive," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(627), S), pages 135-154, Summer.
    11. Margit Schratzenstaller, 2020. "Reformbedarf und Reformoptionen für das EU-Budget aus österreichischer Perspektive," WIFO Monatsberichte (monthly reports), WIFO, vol. 93(3), pages 177-191, March.
    12. Michael P. Devereux & Simon Loretz, 2008. "The Effects of EU Formula Apportionment on Corporate Tax Revenues," Fiscal Studies, Institute for Fiscal Studies, vol. 29(1), pages 1-33, March.
    13. Kawecka-Wyrzykowska Elżbieta, 2020. "Assessment of the European Commission's proposals for financing the EU budget in 2021–2027," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(3), pages 193-208, September.
    14. Leon Bettendorf & Albert Van Der Horst & Ruud A. De Mooij & Hendrik Vrijburg, 2010. "Corporate Tax Consolidation and Enhanced Cooperation in the European Union," Fiscal Studies, Institute for Fiscal Studies, vol. 31(4), pages 453-479, December.
    15. Mardan, Mohammed & Stimmelmayr, Michael, 2018. "Tax revenue losses through cross-border loss offset: An insurmountable hurdle for formula apportionment?," European Economic Review, Elsevier, vol. 102(C), pages 188-210.
    16. Daniela PÎRVU, 2013. "Twhy Ccctb Disadvantages Less Developed Countries Of The European Union," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 1, pages 317-332, June.
    17. Clausing, Kimberly A. & Lahav, Yaron, 2011. "Corporate tax payments under formulary apportionment: Evidence from the financial reports of 50 major U.S. multinational firms," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 20(2), pages 97-105.
    18. Alexander Hudetz & Ann Mumford & Danuse Nerudová & Margit Schratzenstaller, 2017. "Reform needs and options in the EU system of own resources," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(4), pages 609-613, November.
    19. Sebastian Beer & Ruud de Mooij & Shafik Hebous & Michael Keen & Li Liu, 2023. "Exploring Residual Profit Allocation," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 70-109, February.
    20. Danuše Nerudová & Veronika Solilová & Hana Bohušová & Patrik Svoboda & Marek Litzman, 2017. "Panelový regresní model: nástroj pro odhad obvyklé rentability tržeb pro účely převodních cen v kontextu malých a středních podniků [Panel Regression Model: A Tool for the Estimation of the Arm´s L," Politická ekonomie, Prague University of Economics and Business, vol. 2017(4), pages 440-459.

    More about this item

    Keywords

    sustainability; funding; CCCTB; European Union; budget;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

    Statistics

    Access and download statistics

    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:prg:jnlpol:v:2018:y:2018:i:1:id:1177:p:78-98. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.