Implications of the introduction of the Common Consolidated Corporate Tax Base for tax revenues in Romania

Daniela Pirvu, Logica Bănică and Alina Hagiu

Financial Theory and Practice, 2011, vol. 35, issue 2, 197-215

Abstract: In order to address some existing difficulties in corporate income taxation (CIT), the European Commission proposed the introduction of measures for coordination, a solution contested by some member states but supported by most professionals and many organizations representing the interests of European employers. Disputes in connection with the introduction of the Common Consolidated Corporate Tax Base (CCCTB) are occasioned by the uncertainty regarding its effects. Since CIT makes an important contribution to the forming of central budget revenues, the CCCTB is a challenge for Romanian public authorities. The Romanian government has not made clear its options in this respect. In this paper we present the main points of view about the implications of introducing the CCCTB as seen by specialists and estimate the effects of the EU formula apportionment on CIT revenues in Romania. According to research results on a sample of companies in 2006-09, Romania will assume a loser position if the EU formula apportionment uses the payroll (although the loss of tax revenue would be lower than other researchers have estimated) and a winner position if the EU formula apportionment does not use the payroll.

Keywords: economic forecasting; density forecasting; fan chart; stochastic simulations; uncertainty; Croatia (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ijf.hr/eng/FTP/2011/2/pitesti.pdf (application/pdf)

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:ipf:finteo:v:35:y:2011:i:2:p:197-215

Access Statistics for this article

More articles in Financial Theory and Practice from Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Martina Fabris ().