The latest EU package for a fairer system will re-launch a project from 2011
by Emanuele Bonini
CCCTB, let's try again. On Wednesday the European Commission will adopt Action Plan to make corporate taxation fairer, more efficient and more transparent in the EU. Despite the purposes behind this proposal, the main fact is the European Commission is re-proposing something at least five years old. In fact, as they perfectly know in Brussels, the project for a Common Consolidated Corporate Tax Base (CCCTB), was launched already in March 2011. Making a comparison we have nothing but a «re-launch» of the ancient proposal, as admitted by the same European Commission. But what is the Common Consolidated Corporate Tax Base (CCCTB)? It is a single set of rules that companies operating within the EU could use to calculate their taxable profits. In other words, a company or qualifying group of companies would have to comply with just one EU system for computing its taxable income, rather than different rules in each Member State in which they operate. The 16th of March, 2011, the European Commission proposed to the Member States to introduce the CCCTB. In that occasion the idea was to set a common system for calculating the tax base of businesses operating in the EU, although the CCCTB was not compulsory. On the contrary, it was foreseen that the CCCTB could be optional for companies.
According to the European Commission the Action Plan on 17 June will lay the basis for a fundamental reform of the corporate tax framework in the EU, to prevent tax abuse and foster a more growth-friendly tax environment in the Single Market. Furthermore EU officials recalled that as indicated in the 2015 Work Programme, the Commission is pursuing an ambitious agenda to combat corporate tax avoidance and ensure that companies are taxed where their profits are generated. Does the Commission believe to honour all these commitments by introducing an old and ineffective scheme? In Brussels told that the Luxleaks case can't leave the EU member States indifferent, and now is time to deal with tax rulings. In other words, basically the actual one is considered as the best moment to re-launch the idea of a Common Consolidated Corporate Tax Base (CCCTB) which didn't produce any effect in the past. Pierre Moscovici, the European commissioner for economic and financial Affairs, taxation and customs, is supposed to unveil the CCCTB proposal along with other actions to reinforce the link between taxation and economic activity. Hopefully other actions will be really new and more powerful compared to the proposal for a CCCTB, because this action plan sounds like too soft to be true.
CCCTB, let's try again. On Wednesday the European Commission will adopt Action Plan to make corporate taxation fairer, more efficient and more transparent in the EU. Despite the purposes behind this proposal, the main fact is the European Commission is re-proposing something at least five years old. In fact, as they perfectly know in Brussels, the project for a Common Consolidated Corporate Tax Base (CCCTB), was launched already in March 2011. Making a comparison we have nothing but a «re-launch» of the ancient proposal, as admitted by the same European Commission. But what is the Common Consolidated Corporate Tax Base (CCCTB)? It is a single set of rules that companies operating within the EU could use to calculate their taxable profits. In other words, a company or qualifying group of companies would have to comply with just one EU system for computing its taxable income, rather than different rules in each Member State in which they operate. The 16th of March, 2011, the European Commission proposed to the Member States to introduce the CCCTB. In that occasion the idea was to set a common system for calculating the tax base of businesses operating in the EU, although the CCCTB was not compulsory. On the contrary, it was foreseen that the CCCTB could be optional for companies.
According to the European Commission the Action Plan on 17 June will lay the basis for a fundamental reform of the corporate tax framework in the EU, to prevent tax abuse and foster a more growth-friendly tax environment in the Single Market. Furthermore EU officials recalled that as indicated in the 2015 Work Programme, the Commission is pursuing an ambitious agenda to combat corporate tax avoidance and ensure that companies are taxed where their profits are generated. Does the Commission believe to honour all these commitments by introducing an old and ineffective scheme? In Brussels told that the Luxleaks case can't leave the EU member States indifferent, and now is time to deal with tax rulings. In other words, basically the actual one is considered as the best moment to re-launch the idea of a Common Consolidated Corporate Tax Base (CCCTB) which didn't produce any effect in the past. Pierre Moscovici, the European commissioner for economic and financial Affairs, taxation and customs, is supposed to unveil the CCCTB proposal along with other actions to reinforce the link between taxation and economic activity. Hopefully other actions will be really new and more powerful compared to the proposal for a CCCTB, because this action plan sounds like too soft to be true.
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