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

Alex Cobham, Petr Janský, Chris Jones () and Yama Temouri
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Yama Temouri: Aston University, United Kingdom & Khalifa University, United Arab Emirates

No 2021/13, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

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.

Keywords: Common Consolidated Corporate Tax Base; CCCTB; corporate taxation; profit shifting; European Union; multinational enterprises (search for similar items in EconPapers)
JEL-codes: F23 H25 H32 (search for similar items in EconPapers)
Date: 2021-05, Revised 2021-05
New Economics Papers: this item is included in nep-eec and nep-pbe
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Citations: View citations in EconPapers (1)

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https://ies.fsv.cuni.cz/en/veda-vyzkum/working-papers/6428 (application/pdf)

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Journal Article: An evaluation of the effects of the European Commission's proposals for the Common Consolidated Corporate Tax Base (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2021_13

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