Towards Corporate Tax Harmonization in the European Community An Institutional and Procedural Analysis

Through the e×amination of theoretical models as well as practical e×amples, the author studies why repeated attempts at harmonization have failed and concludes that they must take into account not only economic aspects, but also ...

Author: Adolfo Martin Jimenez

Publisher: Springer

ISBN: STANFORD:36105063975895

Category: Business & Economics

Page: 391

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Through the e×amination of theoretical models as well as practical e×amples, the author studies why repeated attempts at harmonization have failed and concludes that they must take into account not only economic aspects, but also political and legal factors. Harmonization of corporate ta×ation is not only a legislative e×ercise; other institutions, such as the EC Court, have an important role to play in the harmonization process, as the US federal e×perience suggests.

Formulary Apportionment for the Internal Market

Next, a proposal for harmonization on the basis of consolidation and apportionment is developed, and the book concludes with an overall analysis of the merits and drawbacks of the proposed model for harmonization.

Author: Stefan Mayer

Publisher: IBFD

ISBN: 9789087220488

Category: International business enterprises

Page: 336

View: 201

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Since its Company Tax Communication of 2001, the European Commission has been promoting a comprehensive harmonization of corporation taxes within the Internal Market on the basis of consolidation and formulary apportionment of the profits of cross-border enterprises, both in the form of a Home State Taxation (HST) and of the Common Consolidated Corporate Tax Base (CCCTB). This study aims to assess whether this approach represents a viable alternative to the arm's length standard currently applied in international tax law. The study comprises four parts. First, a theoretical concept of formulary apportionment is presented in order to define the role that formulary apportionment could take in the area of profit allocation within the Internal Market. This is followed by an in-depth evaluation of the practical experiences of four jurisdictions (United States, Canada, Switzerland and Germany) with formulary apportionment at the subnational level. Next, a comprehensive proposal for harmonization on the basis of consolidation and apportionment is developed, using the insights from the foregoing theoretical considerations and comparative analysis. The book concludes with an overall analysis of the merits and drawbacks of the proposed model for harmonization which suggests that consolidation and formulary apportionment could indeed represent a workable solution to numerous problems of corporate taxation within the Internal Market.

Corporate Income Tax Harmonization in the European Union

The book also exposes the issues involved in the consolidation of the corporate tax base.

Author: D. Pîrvu

Publisher: Springer

ISBN: 9781137000910

Category: Business & Economics

Page: 238

View: 595

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Through the arguments for corporate tax harmonization in the EU and describing the current stage of this process, the legislative rules which are insufficient to solve the many problems implied by the proper functioning of the Single Market, are revealed. The book also exposes the issues involved in the consolidation of the corporate tax base.

Harmonization and Coordination of Corporate Taxes in the European Union

A harmonized European Union (EU) corporate income tax - i.e. a traditional tax aimed at raising resources for a common fiscal policy - is not attainable in the short-term: the Treaty unanimity rule is an obstacle and the priority is ...

Author: C. Garbarino

Publisher:

ISBN: OCLC:1262819854

Category:

Page:

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A harmonized European Union (EU) corporate income tax - i.e. a traditional tax aimed at raising resources for a common fiscal policy - is not attainable in the short-term: the Treaty unanimity rule is an obstacle and the priority is constituted by the (unresolved) EU fiscal architecture. However, the coordination of corporate taxes can prevent negative tax externalities at EU level and operates along three "dimensions". The first dimension is defined as "intra-EU" and attains to intra-State mobility of persons and capital among different Member States but within the boundaries of the EU. The second dimension is defined as "EU-inbound" and refers to the policies of the EU as a whole vis-à-vis non-EU investors. The third dimension is defined as "EU-outbound" and refers to the policies of the EU as a whole in respect to EU investors (i.e. investors based in a Member State) and operating outside of the EU. The intra-EU dimension belongs to the traditional aquis communautaire in corporate tax matters, while "EU-inbound" and "EU-outbound" dimensions are emerging from recent EU initiatives as they relate to the shifting of profits across borders. So the EU coordination of corporate taxes is faced now with policies based on the OECD base erosion and profit shifting (BEPS) project which might crystallize in binding legislation either at EU or national level. The article describes this process by relying on a few preliminary concepts, such as tax competition, tax convergence and enhanced cooperation.

Integration Approaches to Group Taxation in the European Internal Market

In sum, this book provides valuable insights into an area of significant importance to taxpayers, their advisors and policymakers as well.

Author: Ioanna Mitroyanni

Publisher: Kluwer Law International B.V.

ISBN: 9789041145338

Category: Law

Page: 288

View: 571

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The creation of a group taxation framework to subject affiliated entities resident in more than one EC Member State to a single set of rules is an experiment without precedent. Group taxation normally deals with tax liability in the context of a single jurisdiction. There is no system of group taxation worldwide which embraces more than one fiscal jurisdiction under a single regulatory umbrella. This thought provoking work explores the prospect for creating a group taxation system extending across national borders in the EC. The objective is to specify what shape the elements of such a system should take as well as to identify the areas of complexity or probable impasse. Among the topics covered. The relevant jurisprudential and legislative framework of the European Internal Market; A survey of the tax systems of Canada, Switzerland and the US with a focus on the principles pertaining to the division of power between the federal and sub-federal tiers; The policies for corporate taxation in integrated markets; Administrative concerns: compliance, enforcement, dispute resolution and re-assessment of tax liability; Tests for entitlement to group membership; Tax base integration; - Territorial delineation of the group; and Formulary apportionment. In sum, this book provides valuable insights into an area of significant importance to taxpayers, their advisors and policymakers as well.

Tax Harmonization in the Function of Promotion of the European Common Market

One of the measures taken for European economic integration is tax harmonization.

Author: Bedri Peci

Publisher:

ISBN: OCLC:1306515127

Category:

Page:

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One of the measures taken for European economic integration is tax harmonization. Final goal of tax harmonization has been and yet remains the economic efficiency and in particular the promotion of the common market. Tax harmonization in the EU member states is not new. Harmonization of indirect taxes, and in particular the harmonization of turnover tax, was present within the project of European integration since the outset so that a certain minimum of harmonization was created as the VAT Common System. Progress has also been achieved in the harmonisation of excise duty rates and excise structures. While progress has been achieved regarding indirect taxes, the harmonization of direct taxes did not evolved properly and the taxation of income and profits is still being applied in national states, despite many proposals seeking appropriate harmonization. The current European Community Law has no effect on the tax rates on corporate income applicable to European Union member States. In the area of corporate income tax the harmonization of some issues relating to tax treatment of dividend payments between companies and their status changes has been made. All Balkan countries aspire for EU membership by making the transposition of EU rules. These countries have managed to harmonize in a fairly large extent their tax systems with the acquis communautaire. Closer perspectives in these states are the harmonization of customs tax policies. Harmonization of tax legislations with EU requirements would take more time than the initial steps that have been taken for the liberalization of trade. Harmonization of legislation should be accompanied by a genuine reform of public administration in the Balkan countries, as implementation of legislation is much more complex task than its drafting. Kosovo as well as other Balkan countries constantly has reformed its system by reducing tax rates, redefined the tax base and making amendments and clarification of the interpretation of existing laws. Even though Kosovo has a simple legislation much more should be done in order to address the legal gaps, tax harmonization with the EU and the regulation of international tax relations. Administrative capacity to implement European standards and the law in the field of free movement of goods is still inadequate. Considerable efforts should be made further in this regard.

EU Corporate Law and EU Company Tax Law

This book focuses on the crucial issues raised by these developments, on their far-reaching implications and on the key challenges to the future legislative choices.

Author: Luca Cerioni

Publisher: Edward Elgar Publishing

ISBN: 1847205305

Category: Law

Page: 263

View: 269

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With the European Union striving to become the world's most competitive economy, the developments in the two closely interconnected areas of European corporate law and European company tax law are of utmost importance. This book focuses on the crucial issues raised by these developments, on their far-reaching implications and on the key challenges to the future legislative choices. The book illustrates the key developments in EU corporate law and EU company tax law, the EU planned initiatives in these areas, and - at a time when member states increasingly tend to use company law and company tax provisions to attract businesses and investments - it suggests how future developments can contribute to the undistorted functioning of the internal market and to the strategic 'Lisbon-objective'. The explanation of these legislative and case-law developments is of use to students and indicates new opportunities for business expansion strategies throughout the European Community. The book concludes that new optional, but attractive, EU company law vehicles and company tax regimes would be, in these two areas, the only legal and effective means towards an undistorted functioning of the internal market and towards the Lisbon-objective. This ultimately gives rise to a far-reaching challenge for all debates on the future patterns of European integration. Luca Cerioni introduces new themes for academic research and discussion subjects for decision-makers and at the same time, uniquely, makes these accessible to a much wider international public of students, businesses and practitioners.

Tax Coordination in the European Community

The results of the work of the Conference on Tax Coordination in the European Community appear at a time when the Community has undertaken, as a priority task, the completion of the internal market.

Author: Sijbren Cnossen

Publisher: Springer Science & Business Media

ISBN: 9789401732062

Category: Business & Economics

Page: 377

View: 667

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The results of the work of the Conference on Tax Coordination in the European Community appear at a time when the Community has undertaken, as a priority task, the completion of the internal market. The Commission's programme and proposed timetable for the achievement of that goal are spelt out in the White Paper, which was endorsed by the European Council at Milan in June 1985, an endorsement which was repeated at the Council's subsequent meeting in Luxemburg in December 1985. The Commission wholly endorses the views of the Conference as regards the need for urgent action to remove the grave restrictions on the free movement of the factors of production which continue to exist within the Community. It is the Commission's firm view that only a true dismantling of fiscal frontiers can permit the creation of an area without internal frontiers for which the Single European Act provides. To that end a certain approximation of rates of indirect taxation is indispensable if unacceptable distortion of competition is to be avoided. It is noteworthy that the Conference attaches great importance to the Community's problems in the field of direct taxation. This work will be particularly useful to the Commission, which intends to produce a further White Paper on company taxation in the near future. As the Conference rightly notes, action in this field is important for equalisation of the conditions of competition necessary for the completion of the internal market.