In March 2011, the European Commission published a draft council directive on the common consolidated tax base (CCTB). To remove tax obstacles within the European Union, the European Commission proposes a broad concept including a harmonized tax base, a consolidation of group income and an allocation of income according to formula apportionment. Against this background, the objective of this project is to assess the economic consequences of this proposal for Germany. One key issue of the project is to determine the revenue consequences of the reform. Besides the pure impact of regulation changes, we determine the induced behavioral responses and their impact on the tax revenue. Further key issues of the project include a thorough comparison of the proposal to German tax law and a discussion of compliance cost implications.