CCCTB as a Suitable Solution?

  • Veronika Solilova
  • Danuse Nerudova
Part of the Contributions to Management Science book series (MANAGEMENT SC.)


This chapter analyses the impacts of the fundamental change in corporate taxation in the EU recently proposed by the EC especially in relation to small and medium-sized enterprises (SMEs). It begins by discussing the history of harmonization efforts of corporate taxation, the current situation of corporate taxation in the EU and the recent proposal of the Common Corporate Tax Base (CCTB) and Common Consolidated Corporate Tax Base (CCCTB) Directives. The core part of the chapter presents the results of research on the impacts of the introduction of the directive proposals on the performance of SMEs acting in the EU.



The chapter is the result of the GA ČR no. 15-24867S, Small and medium size enterprises in global competition: Development of specific transfer pricing methodology reflecting their specificities”.


  1. Agúndez-García A (2006) The delineation and apportionment of an EU consolidated tax base for multi-jurisdictional corporate income taxation: a review of issues and options. European Commission, working paper no. 9/2006Google Scholar
  2. Amadeus database (2015) Bureau Van DijkGoogle Scholar
  3. Bettendorf L, Devereux MP, Van der Hort A, Loretz S, de Mooij RA (2010) Corporate tax harmonization in the EU. Econ Policy:537–590Google Scholar
  4. Chen D, Lee F, Mintz J (2002) Taxation, SMEs and entrepreneurship. OECD Science, Technology and Industry working papers, no. 2002/09, OECD Publishing, Paris. doi: Accessed 17 May 2017
  5. Cline R, Neubig T, Phillips A, Sanger C, Walsh A (2010) Study on the economic and budgetary impact of the introduction of a common consolidated corporate tax base in the European Union. Ernst & Young LLPGoogle Scholar
  6. Cobham A, Loretz S (2014) International distribution of the corporate tax base: impact of different apportionment factors under unitary taxation. In: 70th Annual congress of the international institute of public finance, LuganoGoogle Scholar
  7. Devereux MP (2004) Debating proposed reform of the taxation of corporate income in the European Union. Int Tax Public Financ 11(1):71–89CrossRefGoogle Scholar
  8. Devereux M, Loretz S (2008) Increased efficiency through consolidation and formula apportionment in the European Union? Working paper no. 12. Centre for Business Taxation, Oxford University, OxfordGoogle Scholar
  9. Domonkos T, Domonkos Š, Dolinajcová M, Grisáková N (2013) Effect of the formulary apportionment of the common consolidated corporate tax base on the tax revenue in the Slovak Republic. Ekonomický časopis 61(5):453–467Google Scholar
  10. Dover R, Ferrett B, Gravino D, Jones E, Merler S (2015) Bringing transparency, coordination and convergence to corporate tax policies in the European Union. EPRS – European Parliamentary Research ServiceGoogle Scholar
  11. Eberhartinger E, Petutschnig M (2014) CCCTB – The employment factor game. WU International Taxation Research Paper Series No. 2014-01Google Scholar
  12. European Commission (1975) Draft Directive concerning the harmonization of systems of company taxation and of withholding tax on dividends. COM(75) 392 finalGoogle Scholar
  13. European Commission (1984) Proposed Directive on company losses. COM(1984) 404 final, OJ 1984 C253Google Scholar
  14. European Commission (1990a) Proposed Directive on loss consolidation. COM(1990) 595 final, OJ 1991, C53Google Scholar
  15. European Commission (1990b) Commission communication to parliament and the council: guidelines on company taxation. SEC(90)601Google Scholar
  16. European Commission (1997) Communication from the commission to the council towards tax co-ordination in the European Union – a package to tackle harmful tax competition COM(97) 495Google Scholar
  17. European Commission (2001a) Commission communication towards an internal market without tax obstacles. A strategy for providing companies with a consolidated corporate tax base for their EU-wide activities. COM(2001) 582 finalGoogle Scholar
  18. European Commission (2001b) Company taxation in the single market – Commission Staff working paper SEC(2001) 1681Google Scholar
  19. European Commission (2003a) Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member StatesGoogle Scholar
  20. European Commission (2003b) Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest paymentsGoogle Scholar
  21. European Commission (2003c) An internal market without company tax obstacles – achievements, ongoing initiatives and remaining challenges. COM(2003) 726 finalGoogle Scholar
  22. European Commission (2005) Tackling the corporation tax obstacles of small and medium-sized enterprises in the internal market – outline of a possible Home State Taxation pilot scheme. COM(2005) 702 finalGoogle Scholar
  23. European Commission (2006) Communication from the Commission to the Council, the European Parliament and the European Economic and Social – Committee tax treatment of losses in cross-border situations. COM (2006) 824 finalGoogle Scholar
  24. European Commission (2007) Observatory of European SMEs, analytical report, 2007. Directorate-General for Enterprise and IndustryGoogle Scholar
  25. European Commission (2011) Proposal for a Council Directive on a common consolidated corporate tax base (CCCTB), COM(2011) 121 finalGoogle Scholar
  26. European Commission (2015) A fair and efficient corporate tax system in the European Union: 5 key areas for action, COM(2015) 302 finalGoogle Scholar
  27. European Commission (2016a) Commission staff working document, impact assessment, SWD(2016) 341 finalGoogle Scholar
  28. European Commission (2016b) Proposal for Council Directive on a common corporate tax base, COM(2016) 685 finalGoogle Scholar
  29. European Commission (2016c) Proposal for Council Directive on a common consolidated corporate tax base, COM(2016) 683 finalGoogle Scholar
  30. European Commission (2016d) The Directive (EU) 2016/1164 lays down rules against tax avoidance practices that directly affect the functioning of the internal marketGoogle Scholar
  31. European Commission (2016e) Annual Report on European SMEs 2015/2016, SME recovery continues. Accessed 17 May 2017
  32. European Commission (2016f) Taxation trends in the European Union, data for the EU Member States, Iceland and Norway. Accessed 17 May 2017
  33. Eurostat (2017) Total R&D personnel and researchers (FTE), in business enterprise sector, by size class (number of employees) and sex [rd_p_perssize]. Business enterprise R&D expenditure (BERD) by size class and source of funds [rd_e_berdsize]. Accessed 14 May 2017
  34. Fuest C, Hemmelgam T, Ramb F (2007) How would the introduction of an EU-wide formula apportionment affect the distribution and size of the corporate tax base? An analysis based on German multinationals. Int Tax Public Financ 14(5):605–626CrossRefGoogle Scholar
  35. Gammie M (2003) Arm’s length of formulary apportionment? In: Arnold BJ, Sasseville J, Zolt EM (eds) The taxation of business profits under tax treaties. Canadian Tax Foundation, Toronto, pp 204–206Google Scholar
  36. Harvard (1976) Multinational corporations and income allocation under section 482 of the internal revenue code. Harv Law Rev 89:1228Google Scholar
  37. Hellerstein W, McLure CE (2004) The European Commission Report on company income taxation: What the EU can learn from the experience of the US states. Int Tax Public Financ 11(2):199–220CrossRefGoogle Scholar
  38. IBFD research platform (2016)Google Scholar
  39. Jacobs OH (2011) Internationale Unternehmensbesteuerung. Deutsche Investitionen im Ausland, Auslandische Investitionen im Inland. Verlag C.H. Beck, MunchenGoogle Scholar
  40. Krchnivá K (2014) Comparison of European, Canadian and the U.S. formula apportionment on real data. In: Enterprise and competitive environment – conference abstract proceedings. Martin Stříž Publishing, BučoviceGoogle Scholar
  41. Krchnivá K, Nerudová D (2015) The influence of allocation formula on generation of profit in different economy sectors. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 63(6):1961–1967CrossRefGoogle Scholar
  42. Kumpf W (1976) Steuerliche Verrechnungspreise in internationalen Konzernen-Moglichkeiten zur Prazisierung des “dealing at arm’s length” Prinzips. Alfred Metzner Verlag GmbH, Frankfurt am MainGoogle Scholar
  43. Lisbon European Council (2000) Presidency conclusion. p 5Google Scholar
  44. Lodin SO, Gammie M (2001) Home state taxation. IBFD, AmsterdamGoogle Scholar
  45. Mayer S (2009) Formulary apportionment for the internal market. IBFD, AmsterdamGoogle Scholar
  46. McDaniel PR (1994) Formulary taxation in the North American Free Trade Zone. Tax Law Rev 49(4):691–744Google Scholar
  47. McIntyre MJ (2003) The use of combined reporting by Nation-States. In: Arnold BJ, Sasseville J, Zolt E (eds) The taxation of business profits under tax treaties. Canadian Tax Foundation, Toronto, pp 245–298Google Scholar
  48. McLure ChE Jr (1997) U.S. Federal use of formula apportionment to tax income from intangibles. Tax Notes Int (10 Mar 1997) 14:864Google Scholar
  49. Miller BF (1995) None are so blind as those who will not see. Tax Notes Int (13 Feb 1995) 66:1023–1035Google Scholar
  50. Mintz JM (2004) Corporate tax harmonization in Europe: it is all about compliance. Int Tax Public Financ 11:221–234CrossRefGoogle Scholar
  51. Mintz J (2008) Europe slowly lurches to a common consolidated corporate tax base: issues at stake. In: Lang M et al (eds) A common consolidated corporate tax base for Europe. Springer, Alemanha, pp 128–138Google Scholar
  52. Mintz J, Smart M (2004) Income shifting, investment, and tax competition. J Public Econ 88(6):1150CrossRefGoogle Scholar
  53. Nerudová D, Solilová V (2014) Missing data and its impact on the CCCTB determinantion. Proc Econ Financ 12(1):462–471. CrossRefGoogle Scholar
  54. Nerudová D, Solilová V (2015a) The impact of the CCCTB introduction on the distribution of the group tax bases across the EU: the study for the Czech Republic. Prague Econ Pap 24(6):621–637CrossRefGoogle Scholar
  55. Nerudová D, Solilová V (2015b) Quantification of the impact on the total corporate tax basis in the Czech Republic caused by the CCCTB implementation in EU28. Politická ekonomie 63(4):456–773CrossRefGoogle Scholar
  56. Nerudova D, Solilova V, Bohušova H, Svoboda P (2015) Dopady zavedení společného konsolidovaného základu daně na příjmovou stránku rozpočtu České Republiky. Wolters Kluwer, PrahaGoogle Scholar
  57. Neumark F (1960) “The EEC reports on tax harmonization” of the Fiscal and Financial Committee. Accessed 17 May 2017
  58. Obermair C, Weninger P (2008) Tax compliance costs for companies in an enlarged European community. General report. In: Lang M et al (eds) Tax compliance costs for companies in an enlarged European community. Linde, WienGoogle Scholar
  59. OECD (2017) Transfer pricing guidelines for multinational enterprises and tax administrationsGoogle Scholar
  60. Oestreicher von A, Koch R (2011) The revenue consequences of using a common consolidated corporate tax base to determine taxable income in the EU Member States. FinanzArchiv 67:64–102CrossRefGoogle Scholar
  61. Petutschnig M (2010) Common consolidated corporate tax base: effects of formulary apportionment on corporate group entities. WU International Taxation Research Paper Series No. 2012-04Google Scholar
  62. Picciotto S (1992) International business taxation – a study in the internationalization of business regulation. Weidenfeld and Nicolson, LondonGoogle Scholar
  63. Roggeman A, Verleyen I, van Cauwenberge P, Coppens C (2012) An empirical investigation into the design of an EU apportionment formula related to profit generating factors. Transform Bus Econ 11(27):36–56Google Scholar
  64. Ruding Report (1992) Report of the committee of independent experts on company taxation, Commission of the European communities, Official Publications of the ECGoogle Scholar
  65. Solilová V, Nerudová D (2013) General model for tax planning. Ekonomický časopis 61(6):597–617Google Scholar
  66. Solilová V, Nerudová D (2016) Implementation of common consolidated corporate tax base and its implications for non-participating country: a case study for the Czech Republic. Ekonomický časopis 64(3):282–298Google Scholar
  67. Sorensen PB (2004) Company tax reform in the European Union. Int Tax Public Financ 11(1):91–115CrossRefGoogle Scholar
  68. Spengel CH, Endres D, Finke K, Heckemeyer J (2014) Effective tax levels using the Devereux/Griffith methodology. EU Commission project No. TAXUD/2013/CC/120. Manheim: ZEWGoogle Scholar
  69. Sullivan M (2002) Data show big shift in U.S. Income to tax havens. Tax Notes Int (2 Dec 2002) 28:876–879Google Scholar
  70. Sullivan M (2004) U.S. multinationals move more profits to tax havens. Tax Notes Int (16 Feb 2004) 33:589 et seqGoogle Scholar
  71. Van den Tempel A J (1970) Corporation tax and individual income tax in the European communities. Accessed 17 May 2017
  72. Van der Horst A, Bettendorf L, Rojas-Romagosa H (2007) Will corporate tax consolidation improve efficiency in the EU? CPB documents 141, CPB Netherlands Bureau for Economic Policy AnalysisGoogle Scholar
  73. Weiner JM (1999) Using the experience in the U.S. states to evaluate issues in implementing formula apportionment at the international level. U.S. Department of the Treasury OTA Paper 83Google Scholar
  74. Weiner JM (2005) Formulary apportionment and group taxation in the EU: insights from the United States and Canada. Taxation papers, working paper no. 8. DG Taxation and Customs Union, European CommissionGoogle Scholar
  75. Weiner JM, Mintz JM (2002) An exploration of formula apportionment in the European Union. European Union 42(8):346–351Google Scholar

Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Veronika Solilova
    • 1
  • Danuse Nerudova
    • 1
  1. 1.Mendel UniversityBrnoCzech Republic

Personalised recommendations