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A Common Consolidated Corporate Tax Base for Multinational Companies in the European Union, Some Issues und Options

Author

Listed:
  • Christoph Spengel

    (University of Mannheim, Centre for European Economic Research (ZEW))

  • Carsten Wendt

    (Centre for European Economic Research (ZEW),)

Abstract

The European Commission proposed to provide multinational companies with a Common Consolidated Corporate Tax Base (CCCTB) for their EU wide activities. The main goal of this proposal is the removal of existing tax obstacles to cross-border economic activity which are mainly caused by the coexistence of 27 national tax systems. This paper reviews the European Commission’s proposals and the underlying rationale. It addresses some of the key issues that arise when considering the design of the CCCTB. Among the issues under investigation are the definition of the consolidated group, the scope and technique of consolidation, the territorial scope of the consolidated tax base, the treatment of companies joining and leaving the CCCTB, and related issues.

Suggested Citation

  • Christoph Spengel & Carsten Wendt, 2007. "A Common Consolidated Corporate Tax Base for Multinational Companies in the European Union, Some Issues und Options," Working Papers 0717, Oxford University Centre for Business Taxation.
    • Handle: RePEc:btx:wpaper:0717
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    File URL: http://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/Publications/Working_Papers/Series_07/WP0717.pdf
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    References listed on IDEAS

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    1. Marcel Gérard, 2006. "Reforming the taxation of multijurisdictional enterprises in Europe: a tentative appraisal," European Economy - Economic Papers 2008 - 2015 265, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Walter Hellerstein & Charles E. McLure, Jr., 2004. "The European Commission's Report on Company Income Taxation: What the EU Can Learn from the Experience of the US States," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(2), pages 199-220, March.
    3. Michael Devereux, 2004. "Debating Proposed Reforms of the Taxation of Corporate Income in the European Union," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(1), pages 71-89, January.
    4. Huizinga, Harry & Laeven, Luc, 2007. "International Profit Shifting within European Multinationals," CEPR Discussion Papers 6048, C.E.P.R. Discussion Papers.
    5. Joann Martens-Weiner, 2006. "Company Tax Reform in the European Union," Springer Books, Springer, number 978-0-387-29487-2, December.
    6. Alfons Weichenrieder, 2009. "Profit shifting in the EU: evidence from Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(3), pages 281-297, June.
    7. Marcel Gérard & Joann Weiner, 2003. "Cross-Border Loss Offset and Formulary Apportionment: How do they affect multijurisdictional firm investment spending and interjurisdictional tax competition ?," CESifo Working Paper Series 1004, CESifo.
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    Cited by:

    1. Bernardi, Luigi, 2009. "Le tasse in Europa dagli anni novanta [Taxation in Europe since the Years 1990s]," MPRA Paper 23441, University Library of Munich, Germany.
    2. Annelies Roggeman & Isabelle Verleyen & Philippe Van Cauwenberge & Carine Coppens, 2013. "The EU apportionment formula: insights from a business case," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(2), pages 235-251, April.

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    More about this item

    Keywords

    Corporation Tax; Group taxation; tax co-ordination; European Union;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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