IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-14336-8_9.html
   My bibliography  Save this book chapter

Reform and Coordination of Company Taxes in the European Union

In: Public Finance in a Changing World

Author

Listed:
  • Sijbren Cnossen

Abstract

In 1992, the Ruding Committee (1992), appointed by the European Commission to examine the need for company tax (CT) harmonization in the European Union (EU), presented its findings and recommendations.1 Although the Committee concluded that differences in CTs distort the workings of the internal market — differences which most likely would not be eliminated by market forces or tax competition — it nonetheless proposed to leave the CTs in the EU essentially the same as it had found them, replete with their widely diverging domestic and cross-border treatment of different kinds of returns and different kinds of recipients of the various returns. As argued below, however, differential treatment will perpetuate the distortions inherent in the current CTs and erode the taxing authority of source states. A minimum statutory CT rate of 30 per cent, proposed by the Ruding Committee, and the adoption of the (draft) directives of the European Commission2 are insufficient to repair the infringements of the neutrality and subsidiarity requirements, as applied to taxation, agreed to by the member states. More fundamental reform seems called for. Moreover, CT reform in the member states is a condition for CT coordination between the member states.

Suggested Citation

  • Sijbren Cnossen, 1998. "Reform and Coordination of Company Taxes in the European Union," Palgrave Macmillan Books, in: Peter Birch Sørensen (ed.), Public Finance in a Changing World, chapter 8, pages 221-254, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-14336-8_9
    DOI: 10.1007/978-1-349-14336-8_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Magni, Carlo Alberto, 2009. "Splitting up value: A critical review of residual income theories," European Journal of Operational Research, Elsevier, vol. 198(1), pages 1-22, October.
    3. Silvia Giannini & Carola Maggiulli, 2002. "The Effective Tax Rates in the EU Commission Study on Corporate Taxation: Methodological Aspects, Main Results and Policy Implications," CESifo Working Paper Series 666, CESifo.
    4. Roberto Ghiselli Ricci & Carlo Alberto Magni, 2014. "Axiomatization of residual income and generation of financial securities," Quantitative Finance, Taylor & Francis Journals, vol. 14(7), pages 1257-1271, July.
    5. Rumpf, Dominik, 2013. "Zinsbereinigung bei der Dualen Einkommensteuer," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 32, number urn:isbn:9783161528699, May.

    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:pal:palchp:978-1-349-14336-8_9. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.