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An Evaluation of the Effects of the European Commission´s Proposals for the Common Consolidated Corporate Tax Base

Author

Listed:
  • Alex Cobham

    (Tax Justice Network, United Kingdom)

  • Petr Jansky

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)

  • Chris Jones

    (Aston University, United Kingdom)

  • Yama Temouri

    (Aston University, United Kingdom & Khalifa University, United Arab Emirates)

Abstract

This paper evaluates the Common Consolidated Corporate Tax Base (CCCTB) recently proposed by the European Commission. We find that if the CCCTB is introduced as it is currently proposed (including loss consolidation), then it is likely to impose large tax revenue costs of about one fifth of the corporate tax base. Second, we show that an application of the CCCTB proposals at only the European Union (EU) level would overlook the extent of profit shifting out of the EU and could lock in further unnecessary revenue losses. Third, major EU profit-shifting countries such as Luxembourg, Ireland and the Netherlands may experience significant revenue losses.

Suggested Citation

  • Alex Cobham & Petr Jansky & Chris Jones & Yama Temouri, 2021. "An Evaluation of the Effects of the European Commission´s Proposals for the Common Consolidated Corporate Tax Base," Working Papers IES 2021/13, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2021.
    • Handle: RePEc:fau:wpaper:wp2021_13
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    File URL: https://ies.fsv.cuni.cz/en/veda-vyzkum/working-papers/6428
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Joana Andrade Vicente, 2023. "Rethinking corporate taxation in the European Union: how and where to tax Multinational Enterprises," Working Papers REM 2023/0286, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    2. Mlčúchová Markéta, 2023. "Formulary apportionment in the European Union—future research agenda," Economics and Business Review, Sciendo, vol. 9(3), pages 124-152, October.

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    More about this item

    Keywords

    Common Consolidated Corporate Tax Base; CCCTB; corporate taxation; profit shifting; European Union; multinational enterprises;
    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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