The proposal for a Common Consolidated Corporate Tax Base (CCCTB) for Europe
A reality to come or political fantasy?
On 16 March, the European Commission adopted proposals for a dramatic change to the basis for corporate taxation in the tax laws of the EU Member States. The CCCTB proposals aim to provide for a fully harmonized European tax base for EU based group of companies by:
- Pooling cross border losses with profits by consolidating income from members of the group
- Reducing transfer pricing issues by disregarding intra group transactions
- Limiting double tax issues by disregarding intra group restructurings
- Lowering compliance cost by introducing a one-stop shop for administrative matters
The proposals would have far-reaching impacts on the future of country tax systems, company approaches to tax compliance and all parties’ approaches to potential tax controversy. Prior to the publication of the draft Directive, Ernst & Young's EU Tax Network and Quantitative Economics and Statistics (QUEST) group have produced a number of reports and models identifying the potential impact (see www.ey.com/ccctb), including changes to effective tax rates of companies and to the tax receipts of the participating Member States.
International Tax Developments - a quarterly series of webcasts
Ernst & Young will be producing a quarterly update webcast on international tax developments across the globe aimed primarily at audiences in Europe, Africa and Asia. You are cordially invited to join our live inaugural webcast to hear our analysis and commentary on the EU Commission´s proposals. This 60 minute webcast will focus on:
- the ramifications for multinationals doing business in the EU
- the likelihood of final adoption throughout the European Union
- the potential form of the CCCTB (including application to a subset of the 27 Member States)
- the technical means to evaluate the impact of the CCCTB model to multinationals and
- how companies can engage in the process
Featured panelists
Marco Groen, Ernst & Young Netherlands, EMEIA ITS Markets Leader
Klaus von Brocke, Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Germany, EMEIA Leader of EU Tax Network
Chris Sanger, Ernst & Young LLP (UK), Leader Global Tax Policy Group
Tom Neubig, Ernst & Young LLP (US), Director Quantitative Economics and Statistics Group