Staying up to date with the European Commission's Common Consolidated Corporate Tax Base proposals

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The European Commission proposal for a Common Consolidated Corporate Tax Base (CCCTB) arguably represents one of the most fundamental changes in corporate taxation attempted within the Union. It is a highly ambitious project which, by offering businesses the possibility of using one single consolidated corporate tax base for all their EU activities and profits, may potentially reduce the administrative costs for companies already operating across Europe, allow the consolidation of profits and losses cross-border and encourage expansion within the internal market.

Such proposals benefit from rigorous testing and consultation, to ensure that the proposals under consideration deliver the objectives and can be adapted as necessary during consultation. In the reports listed below, EY has identified the potential impact of the proposals as set out in Working Paper 57, providing a valuable contribution to the policy debate.

As set out below, the final proposed Directive was issued by the Commission on 16 March 2011. As such, the reports below present findings based on the facts as set out in the reports, based on the proposal as currently set out. It should not be considered to be a judgement on the attractiveness of the policy, which is a role for policy advisers. Through identifying the potential impact of proposals, Ernst and Young can assist policy makers in their consideration of policy options.

Replay our webcast on the CCCTB proposals 
The CCCTB proposals would have far-reaching impacts on the future of country tax systems, company approaches to tax compliance and all parties’ approaches to potential tax controversy. On April 19 2011 EY held a webcast, which you can replay here.

EU direct tax alert 164: European Commission publishes final Common Consolidated Corporate Tax Base (CCCTB) proposals On 16 March 2011, shortly following the conclusion of an important European Union (EU) summit to stabilize the Euro, the European Commission has adopted formal proposals regarding a CCCTB for Europe, making use of political momentum to further align the Member States’ fiscal policies. Full information regarding the proposed Directive is available in EY EU tax alert 164.
European Commission proposals for a CCCTB
A study on the impact of the Common Consolidated Corporate Tax Base proposals on European business taxpayers - January 2011: A case study on 5 multinationals groups, looking at the impact on administration and effective tax rate, published by the Irish Business and Employers Confederation (IBEC).
EU direct tax alert 160: Irish Business and Employers Confederation (IBEC) releases EY report analyzing impact of Common Consolidated Corporate Tax Base (CCCTB) proposals on corporate tax compliance processes and burden 
Study on the Economic and Budgetary Impact of the Introduction of a Common Consolidated Corporate Tax Base in the European Union: An impact assessment produced for the Department of Finance of Ireland, that has been published by the Department on its website.
EU direct tax alert 159: Irish Department of Finance releases EY report analyzing economic and fiscal effects of EU Common Consolidated Corporate Tax Base (CCCTB) proposal.
Tax Policy & Controversy Quarterly Briefing February 2011: European Commission: tax policy outlook for 2011 and beyond.