“This week, as our partner Tax Justice Netwrok explains, saw re-launch of the European Union’s Common Corporate Consolidated Tax Base (CCCTB). The purpose of the CCCTB is to harmonise the rules around how multinational corporations are taxed across the European Union, and to switch from OECD tax rules to a unitary approach with formulary apportionment (more on that below).”
See Tax Justice Network’s full analisis here.
Global Alliance for Tax Justice’s European member Eurodad (European Network on Debt and Development) also reacted to the upcoming proposal from the European Commission for a Common Corporate Tax Base (CCTB).
Tove Ryding, Tax Justice Coordinator for the European Network on Debt and Development (Eurodad) said: “The European Commission is talking about a new and improved tax system, with so-called “consolidation” of the tax base. If this happened, the transfer pricing loophole, which allows multinational corporations to dodge taxes in the EU, would finally be closed.
“However, while the Commission is talking about ‘consolidation’, it is not actually suggesting that Member States start negotiating consolidation. This discussion is postponed until some unspecified date in the future.
“Instead, the Commission has now launched another proposal, which does not include consolidation, and therefore will not fix the problem of transfer pricing and corporate tax dodging. This proposal is a mixed bag of a few fixes to the current tax system, but also introduces some new loopholes, which is the last thing we need.”
In 2011, the European Commission put an ambitious proposal, with consolidation, on the table. However, due to resistance from the EU Member States, the proposal did not get adopted.
Ryding said: “The Member States have promised to make multinational corporations pay their taxes, and therefore we need to pull them back to the negotiating table. Unfortunately, this is not what the Commission has done. Instead of putting the proposal for a real, new EU tax system back on the table, the Commission has invited the Member States to yet another discussion about making tweaks to the existing system.”
You can read more details and find the media contact on Eurodad’s website.