The Impact of the Introduction of a CCCTB in the EU

Abstract

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Is there a Real Chance to Adopt the CCCTB without UK Participation in the EU?

“…In comparison with the current tax base in the EU-27, the tax base under the CCCTB would decline by 5.34% (in the case of the EU-28, it would decline by 4.20%) and would still be able to generate sufficient resources after Brexit. Furthermore, our research proved the same result as that in Nerudová and Solilová (2019) assessing the case in which the EU-28 changes the threshold for the mandatory entry of the CCCTB system, i.e., its decrease to zero does not mean a significant increase in the overall tax base. To capture the dynamic approach, we considered behavioural effects, which we consider to be short term as the threshold should quickly decline to zero.…”

“…From the fiscal point of view, the change of the threshold would not mean a significant increase in CCCTB system yield. This finding was also highlighted in the study by Nerudová and Solilová (2019) in the case of the EU-28. However, before the final consideration of the CCCTB, other aspects of the CCCTB should be considered.…”

“…The second stream focuses mainly on the allocation formula factors with respect to the prediction of corporate income, and is represented by studies such as Mintz (2008) and Eberhartinger and Petutschning (2014), or with respect to the factors' explanatory power, Hines (2008), Roggeman et al (2012), Cobham and Loretz (2014), Krchnivá and Nerudová (2015) and Hundsdoerfer and Wagner (2020). The third stream of research includes studies on the impacts of the introduction of the CCCTB on the tax revenues of EU Member States, such as Fuest, Hemmelgarn and Ramb (2007), Brochner et al (2007), Oestreicher and Koch (2011), Oestreicher, Keser and Kimpel (2013), Devereux and Loretz (2008), van der Horst, Bettendorf and Rojas-Romagosa (2007), Bettendorf et al (2009), Cline et al (2010), Cobham et al (2017), Solilová and Nerudová (2018), Nerudová and Solilová (2019) and Hentze (2019). The fourth stream represents studies that do not focus on the impact on the EU but rather on individual states, such as Skjerpe (2012) for Norway, Pirvu, Banica and Hagiu (2011) for Romania, Scerri (2009) for Malta, Domonkos et al (2013) and Nerudová and Solilová (2017b) for the Slovak Republic, Nerudová and Solilová (2015a) and Nerudová and Solilová (2015b) for the Czech Republic, and Sampaio Cândido (2016) for Portugal.…”

Transfer Pricing in V4 Countries

“…A Directive for the Common Consolidated Corporate Tax Base, i.e. a measure which could at least eliminate the problems of transfer pricing for some tax-payers and on the part of tax authorities, has not, however, received enough support among all the EU Member States so far (for more details see for example European Commission, 2020;Nerudová and Solilová, 2019;. There are many differences in regards to domestic transfer pricing legal regulations in EU member countries.…”

An evaluation of the effects of the European Commission’s proposals for the Common Consolidated Corporate Tax Base

“…For Europe, examples of studies with findings of revenue effects for various apportionment formulas include Fuest, Hemmelgarn and Ramb (2007), Devereux and Loretz (2008), Nerudová, Solilová and Dobranschi (2016) and Nerudová and Solilová (2019). Furthermore, Nerudová and Solilová (2019) take into account the behaviour of the firms that can join the CCCTB voluntarily.…”