Corporate Income Tax Coordination in the European Union

Devereux, Michael and Fuest, Clemens (2010) Corporate Income Tax Coordination in the European Union. Transfer, 16 (1). pp. 23-28.

Abstract

The globalisation of economic activity and the growing importance of multinational corporations have far-reaching consequences for national tax policies. Since 1995, the average corporate tax rate in the EU has fallen from 35% to 23%. In addition, differences and incompatibilities between the national systems of corporate income taxation distort investment, complicate the tax system and give rise to conflicts between taxpayers and tax authorities as well as between tax authorities of different countries. Given this, there is a widespread view that greater coordination of corporate taxation is required. Recently, the European Commission proposed introducing a Common Consolidated Corporate Tax Base (CCCTB) in Europe. This article discusses the economic advantages and the drawbacks of the CCCTB concept.

Item Type: Article
Keywords: Corporate taxation, tax coordination, European Union
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 28 May 2012 14:09
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/3431

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