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Twhy Ccctb Disadvantages Less Developed Countries Of The European Union

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  • Daniela PÎRVU

    (University of Pitesti, Arges County)

Abstract

From its appearance, the Common Consolidated Corporate Tax Base generated numerous de-bates and controversies since its effects cannot be precisely measured. Two of the factors in the formula for allocating common consolidated corporate tax base are susceptible to disadvantage some Member States. This paper demonstrates, by a case study in Romania, that the tax sharing mechanism, through the payroll factor, disadvantages less developed countries of the European Union. These countries will record losses of corporate income tax revenues.

Suggested Citation

  • 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.
    • Handle: RePEc:cmj:seapas:y:2013:i:1:pirvud
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    References listed on IDEAS

    as
    1. 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.
    2. Daniela Pîrvu, 2012. "The Tax Harmonization in the European Union," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Corporate Income Tax Harmonization in the European Union, chapter 1, pages 8-24, Palgrave Macmillan.
    3. 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.
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    6. Fuest, Clemens & Hemmelgarn, Thomas & Ramb, Fred, 2006. "How would formula apportionment in the EU affect the distribution and the size of the corporate tax base? An analysis based on German multinationals," Discussion Paper Series 1: Economic Studies 2006,20, Deutsche Bundesbank.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Common Consolidated Corporate Tax Base; Corporate income tax revenues; Disadvantages; Losses; EU Formula Apportionment; Tax sharing mechanism;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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