Comparison of the Change in the Effective Tax Burden of Corporations Across EU Member States Based on a Model-Firm Approach (Tax Analyzer Model)
Comparison of the Change in the Effective Tax Burden of Corporations Across EU Member States Based on a Model-Firm Approach (Tax Analyzer Model)
Increasingly globalised, mobile and digital business models and corporate structures have enhanced the scope for corporate tax planning activities and continue to challenge the uncoordinated coexistence of national tax systems. In line with the OECD’s efforts in the “Base Erosion and Profit Shifting” (BEPS) project, the European Commission takes an active role in the fight against aggressive tax planning. Among others, five key areas for improving the efficiency and fairness of the international tax system were identified and published in an action plan in June 2015. In this context, the proposal for a Council Directive for the introduction of a Common (Consolidated) Corporate Tax Base (CC(C)TB) has been re-launched on 25 October 2016 whereas the original one has already been published on 16 March 2011. As has already been shown with regard to the 2011 CCCTB proposal, the introduction of a harmonized set of tax accounting rules will presumably have a considerable effect on the effective tax burden of corporations situated in the EU-28 Member States. Therefore, this study will analyse and quantify these effects based on firm-level data using the model “European Tax Analyzer”. In addition, it will provide a comparison of the total effects identified from the CC(C)TB proposal 2011 with the ones from the re-launched CC(C)TB proposal 2016.