scholarly journals CFC rules in the context of the proposed CCCTB directive

2011 ◽  
Vol 59 (7) ◽  
pp. 363-370
Author(s):  
Veronika Sobotková
Keyword(s):  
Tax Avoidance ◽  
The European Union ◽  
Corporate Tax ◽  
Tax Base ◽  
Tax Preference ◽  
Cross Border ◽  
Council Directive ◽  
Pros And Cons ◽  
Low Costs ◽  
Cfc Rules

In the proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) there have been introduced a specific anti-abuse provisions, CFC rules. These rules are aimed at tax evasions and tax avoidance. The basic principle is the protection of the tax base against erosion through practices of artificial income shifting. Generally, CFC rules prevent tax avoidance in a state of a shareholder by denying the deferred taxation of profits generated by its controlled company, which is a resident in a tax preference jurisdiction. Even thought the CCCTB directive would be aided easier and low-costs cross-border business as well as it would be restricted the harmful tax competition there are questions whether it is advisable to introduce these rules into such system of the CCCTB, whether these rules are compatible with the CCCTB and whether it is regulated properly. So, the focus of this paper rests on the interaction of the proposed CCCTB directive with existing CFC rules in the European Union. The paper deals with pros and cons, economic and legal perspectives these rules in the context of the proposed CCCTB directive.

Deduction of notional interest on equity according to the draft of the European Commission for a Council Directive on a Common Corporate Tax Base

2018 ◽  
Vol 67 (3) ◽  
pp. 308-331 ◽  
Author(s):  
Manfred Rose
Keyword(s):  
European Commission ◽  
Corporate Tax ◽  
Tax Base ◽  
Council Directive

Abstract Der Beitrag untersucht die von der Europäischen Kommission 2016 im Entwurf für eine neue Richtlinie des Rates über eine gemeinsame Körperschaftsteuer-Bemessungsgrundlage vorgeschlagenen Regeln zum Abzug fiktiver Zinsen auf neu gebildetes Eigenkapital. Geprüft wird, ob hiermit die in den meisten Ländern der EU bestehende steuerliche Diskriminierung der Investitionsfinanzierung mit Eigenkapital beseitigt wird. Nach vereinfachten Investitionsrechnungen werden die Unternehmen dazu veranlasst, mehr eigenfinanzierte Investitionen zu tätigen. Mit einer gegenüber dem Kommissionsvorschlag modifizierten Bestimmung des steuerlich relevanten Eigenkapitals wird es möglich, die für die Harmonisierung der Bemessungsgrundlagen so bedeutsame Neutralität des steuerlichen Bewertungsrechts sowie eine steuerliche Gleichbehandlung unterschiedlicher Zeitverläufe von Investitionserträgen zu gewährleisten.

scholarly journals An Estimable Model of Income Redistribution in a Federation: Musgrave Meets Oates

2019 ◽  
Vol 11 (1) ◽  
pp. 406-434 ◽  
Author(s):  
Kevin Milligan ◽  
Michael Smart
Keyword(s):  
Tax Avoidance ◽  
Tax Base ◽  
Tax Rate ◽  
Personal Taxes ◽  
Cross Border ◽  
State Tax ◽  
Decentralization Reform ◽  
National Tax ◽  
Optimal Taxes ◽  
Personal Taxation

We develop a theory of cross-border income shifting in response to subnational personal taxation in a federation and examine its implications for the excess burden of personal taxes. We show how a properly chosen federal tax rate can offset the fiscal externality between states and facilitate decentralization, even in a heterogeneous federation where unitary taxation is suboptimal. Optimal taxes depend on the elasticities of national tax avoidance and of cross-state tax base shifting. We estimate these elasticities around a tax decentralization reform in Canada, finding both to be empirically relevant. We discuss the implications for optimal federalism. (JEL D31, H21, H23, H24, H26, H71, H77)

Besteuerungsprinzipien und effektive Unternehmenssteuerbelastungen in der Europäischen Union: Regelt sich die EU-weite Steuerharmonisierung von selbst?

2011 ◽  
Vol 12 (1) ◽  
pp. 47-71 ◽  
Author(s):  
Christina Elschner ◽  
Jost H. Heckemeyer ◽  
Christoph Spengel
Keyword(s):  
European Union ◽  
Investment Decisions ◽  
Tax Rates ◽  
Eu Law ◽  
The European Union ◽  
Corporate Tax ◽  
Cross Border ◽  
Tax Regimes ◽  
Country Specific ◽  
The Eu

AbstractEU law demands that the allocation of factors and goods within the European Union shall not be distorted by taxes. Efforts to formally harmonize corporate tax regimes in Europe have, however, stalled in recent years. What is more, the source principle has prevailed over residence based taxation which is seen to be more in line with EU law. Tax induced distortions of cross-border investment decisions are supposed to be the consequence. Based on country-specific effective average tax rates from 1998 to 2009, this article shows that there is, however, non-coordinated convergence of tax burdens within the EU. Thus, distortions of cross-border investment decisions are limited and decreasing even without formal harmonization.

scholarly journals The international Challenges and Finnish Corporate Taxation

2014 ◽  
Vol 2014 (2) ◽  
pp. 132-148
Author(s):  
Juha Lindgren
Keyword(s):  
Corporate Taxation ◽  
Corporate Tax ◽  
Tax Base ◽  
Tax Rate ◽  
Cross Border ◽  
Exchange Of Information ◽  
The Cross ◽  
National Tax

Abstract One of the main trends in Finnish corporate taxation during the last ten years has been the lowering of the corporate tax rate. The decision to lower the corporate tax rate to 20% from the beginning of 2014 also changed the approach in reforming the corporate taxation as it was decided to stay on the grounds of a broad tax base and not to make loopholes in it with targeted exceptions. The Finnish corporate taxation contains also some provisions that act as incentives for investment and the establishment of companies. However, the focus has been lately on the rules with purpose to protect the national tax base. Therefore, article handles both the specific anti avoidance rules and the application of the general anti avoidance rule on the cross-border transactions. Some particular challenges and the exchange of information are also taken into account before the conclusion with some ideas and aspects on future reforms.

scholarly journals A Common Corporate Tax Base for Europe: An Impact Assessment of the Draft Council Directive on a CC(C)TB

2012 ◽  
Author(s):  
Christoph Spengel ◽  
Martina Ortmann-Babel ◽  
Benedikt Zinn ◽  
Sebastian Matenaer
Keyword(s):  
Impact Assessment ◽  
Corporate Tax ◽  
Tax Base ◽  
Council Directive

From Hegemony to Transatlantic Tax Battle?

2020 ◽  
pp. 131-148
Author(s):  
Lukas Hakelberg
Keyword(s):  
Good Governance ◽  
Tax Avoidance ◽  
Common Market ◽  
The European Union ◽  
Profit Shifting ◽  
Tax Base ◽  
Member States ◽  
Recent Developments ◽  
The Common ◽  
Financial Secrecy

This chapter discusses the most recent developments in transatlantic bargaining over countermeasures to financial secrecy and corporate profit-shifting, and sketches several future scenarios based on the theory developed in Chapter 2. It shows that dissatisfaction with nonreciprocal automatic exchange of information (AEI) and the BEPS project's failure to limit tax avoidance in the common market has motivated the European Commission and several member states to push for a common reaction. The European Union has since produced an integrated blacklist of third countries not complying with its tax good governance standards and ordered several member states to claw back taxes lost to sweetheart deals granting selective advantages to individual firms. Moreover, finance ministers debate the introduction of a digital services tax and a common consolidated corporate tax base to curb profit-shifting in the common market. Finally, the chapter presents some overall conclusions drawn from the research presented in this volume.

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