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

Spengel, Christoph; Ortmann-Babel, Martina; Zinn, Benedikt; Matenaer, Sebastian

doi:10.2139/ssrn.2105622

Cited by 12 publications

(5 citation statements)

References 14 publications

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“…The results suggest that, on the average, the tax burdens of the listed firms are unaffected by the 2007 tax reform and vary across the industrial sectors of the economy given that the result of the sectoral analysis reveals some gainer firms (particularly in the health and oil and gas sectors), resulting from the reduction in their tax burden and loser firms in the agricultural and natural resources sectors. These results are in line with the findings of Spengel et al (2012) [2], Fang et al (2017) [13], Oroppalo, F. anf Parisi, V. (n.d) [6]. These findings are a useful guide to tax policy makers.…”

Section: Discussionsupporting

confidence: 90%

“…Additionally, an average of 22% of the federally collectible revenue in Nigeria from 2012-2015 accrues from firms chargeable under the CITA (FIRS, 2012, [13]), what happens to the tax burden of this single large group of tax payers should be of concern to any government in order to ensure an uninterrupted flow of revenue to maintain and finance development. Hines Jr., J.R. (2017) [14] also observes that taxes on business activities that discourage the formation and expansion of businesses, indeed, Spengel et al (2012) [2]; Hebows, S., Ruf, M., and Weichenvieder, A.J. (2011) [15] find tax to determine how attractive a country is Open Journal of Business and Management as a destination for investments.…”

Section: Introductionmentioning

confidence: 99%

“…Following the proposal of a Common Consolidated Corporate tax Base (CCCTB) by the European Commission for the EU, Spengel, C., Ortmann-Babel, M., Zinn, B., and Mantenaer, S. (2012) [2] simulate effect of the proposal on the tax burden of member states. The study finds tax burden to be generally unaffected, albeit, some gainer and looser states were found (but not mentioned).…”

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confidence: 99%

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Tax Burden Implication of Tax Reform

Salaudeen¹,

Atoyebi²

2018

OJBM

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This study examines the effect of the 2007 reform pertaining to the corporate tax system on the tax burden of listed firms in Nigeria using the t-test and canonical correlation analysis. Data were collected from the financial statements of the 86 sampled firms for the period 2003-2011 subdivided into pre-reform (2003)(2004)(2005)(2006) and post reform (2008-2011) sub-periods for the purpose of comparing periods' tax burdens. Data were also segregated along the Nigerian Stock Exchange industrial sector classifications. This study finds, on the whole, that the 2007 corporate tax reform has brought minimal tax burden on listed firms, however, sectoral analysis reveals the heterogeneity in the effect of the tax reform as firms within the agricultural and natural resources sectors witnessed increases in tax burden while firms in health and oil and gas sectors were favoured with reduced tax burden. The tax burden of other sectors is unaffected by the reform.

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Section: Discussionsupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Tax Burden Implication of Tax Reform

Salaudeen¹,

Atoyebi²

2018

OJBM

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“…In the terms of the strategy Europe 2020 is the main objective of the CCCTB system to remove the needs for transfer pricing rules, to eliminate any possibilities for double taxation due to incurring of tax liabilities in the diff erent EU Member States and also the reduction of tax compliance costs (Spengel et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

The Influence of Allocation Formula on Generation of Profit in Different Economy Sectors

Krchnivá

Nerudová

2016

Acta Univ. Agric. Silvic. Mendelianae Brun.

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The mechanism for the distribution of the Common Consolidated Corporate Tax Base will be based on three macroeconomics factors which are considered to be the main indicators of generated profit/loss. The paper analyzes the explanatory power of proposed allocation formula for the distribution of the Common Consolidated Corporate Tax Base with respect to the sector of economic activity from the perspective of the Czech independent enterprises. The research is based on the comparison of the coefficients of determination indicating the proportion of explained variability of proposed multiple regression models. The paper concludes that the proportion of explained profitability by the allocation formula factors as are defined by the Common Consolidated Corporate Tax Base Draft Directive may differ up to 34% with regard to the sector of economic activity classified by NACE classification.

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“…Oestreicher et al [2009] implemented a model firm approach to assess the consequences which an adoption of a CCTB (a common corporate tax base without international consolidation and apportionment) would have on effective tax burdens of companies located in different EU member states. This research was further developed in Spengel et al [2012], after the proposal of the directive was released. Leszczyłowska [2013] analyzed the effects of selected CCTB regulations on the tax burden of a group of Polish public companies with static microsimulation.…”

Section: Introductionmentioning

confidence: 99%

Provisions for Future Liabilities and Effective Corporate Income Tax Rate

Leszczyłowska

2016

Gospodarka Narodowa

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The paper quantifies the impact of timing differences that emerge in the case of discrepancies between accounting and tax rules on the corporate tax burden. The objective of the paper is to investigate the effect of the accelerated deductibility of company expenses via provisions for future liabilities on the multi-period effective average corporate tax rate (EATR). In the investigation, pension provisions and so-called "other provisions" are taken into account and a multi-period backward-looking measure of the tax burden based on corporate cash flows is developed. The investigated companies are divided into several subgroups according to their size and multi-period cash flow. Under the current tax law, the highest tax burden among companies with positive cash flows is observed for medium-sized firms, at 33%. For small and large enterprises, the burden takes values of 24% and 25% respectively. A different situation is observed among firms with negative cash flows: in general, the EATRs are noticeably higher in this case. Under the current tax law, the average effective tax rates are 60% for all firms and 38%, 45% and 51% for medium-sized, small and large corporations respectively. If changes are made to the ways provisions for future payments are treated under tax regulations, a slight reduction may be observed in the multi-period average effective tax burden. In general, the timing effects of the deductibility of provisions lead to an average change in the effective tax rate from-1 percentage point (in the case of small companies with positive cash flows) to-4 percentage points (in the case of small entities with negative cash flows and medium-sized entities with positive cash flows). Although the differences in the median tax burden may seem to be slight, they are statistically significant.

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

Cited by 12 publications

References 14 publications

Tax Burden Implication of Tax Reform

Tax Burden Implication of Tax Reform

The Influence of Allocation Formula on Generation of Profit in Different Economy Sectors

Provisions for Future Liabilities and Effective Corporate Income Tax Rate

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