The Prospects of the Corporate Taxation Agreement in the European Union

Gheorghe Matei and Pârvu Daniela
Additional contact information
Gheorghe Matei: University of Craiova
Pârvu Daniela: University of Pitesti

Theoretical and Applied Economics, 2009, vol. 01(530), issue 01(530), 79-88

Abstract: In all the countries of the world, the fiscal policy is a tool used by the governments in order to get the public incomes and to stimulate the economic development, to reduce the fluctuations and the economic instability. Income taxation causes great difficulties within an open economy, like EU economy, since there is a competition of attracting investments. The tax rate agreement on the European companies’ profits is subject of dispute and discussion. The European Committee’s proposal to adopt measures to charge the capital companies’ incomes according to a consolidated fiscal base for activities performed within the European Union has many supporters, attracted by the possibilities provided by a more concise taxation system and a better business planning that may result when applying such formula. This measures will be a very important step in the process of improving the business environment, by consolidating the Unique Market and increasing the competition. The opponents of the idea of corporate taxation agreement are, as a rule, countries which are currently favored by the reduced level of the taxation of the companies’ incomes in their relations to their European neighbors (Ireland, Great Britain, Slovenia and the Baltic Countries). According to these countries’ representatives, fiscal agreement will determine the migration of the investments to the more stable economies of the Central Europe, which have an infrastructure and benefit from the competitive advantages in different branches of the economy and it will limit the positive effects of the fiscal competition within the European Union.

Keywords: fiscal policy; tax harmonization; income taxation; Common Consolidated Corporate Base. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/articole/364.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=364&rid=45 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:01(530):y:2009:i:01(530):p:79-88

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().