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A Common Consolidated Corporate Tax Base through Enhanced Cooperation?

Källberg, Alex LU (2011) JURM02 20112
Department of Law
Abstract (Swedish)
År 2000 satte den Europeiska Unionen ett strategiskt mål att bli en större, mer konkurrenskraftig ekonomisk region med stark tillväxt för ekonomi och arbetskraft. En viktig komponent i att nå detta mål är att utveckla den inre marknaden och stödja den fria rörligheten för varor, kapital, tjänster och personer inom den Europeiska Unionen. Kommissionen har identifierat skillnader i Medlemsstaternas skattesystem som ett stort hinder för den inre marknaden vilket skapar handelshinder, stör fri konkurrensen och hindrar tillväxt. För att effektivt stävja detta har Kommissionen föreslagit skapandet av en gemensam konsoliderad bolagsskattebas (Common Consolidated Corporate Tax Base); ett nytt frivilligt skattesystem som kommer att tillåta... (More)
År 2000 satte den Europeiska Unionen ett strategiskt mål att bli en större, mer konkurrenskraftig ekonomisk region med stark tillväxt för ekonomi och arbetskraft. En viktig komponent i att nå detta mål är att utveckla den inre marknaden och stödja den fria rörligheten för varor, kapital, tjänster och personer inom den Europeiska Unionen. Kommissionen har identifierat skillnader i Medlemsstaternas skattesystem som ett stort hinder för den inre marknaden vilket skapar handelshinder, stör fri konkurrensen och hindrar tillväxt. För att effektivt stävja detta har Kommissionen föreslagit skapandet av en gemensam konsoliderad bolagsskattebas (Common Consolidated Corporate Tax Base); ett nytt frivilligt skattesystem som kommer att tillåta multinationella företagsgrupper inom den Europeiska Unionen att enbart hantera ett enda skattesystem istället för ett för varje land där man bedriver verksamhet.

Förslaget är menat att stimulera näringsverksamhet och ta bort fiskala hinder på den inre marknaden, men frågan har ställts om det över huvud taget är möjligt att implementera med hänsyn till medlemsstaternas oförmåga att enas i gemensamma skattefrågor. Ett flertal medlemsstater har uttryckt sin ovilja att delta i ett sådant samarbete och då harmonisering av direkta skatter kräver enhällighet är många bekymrade över att förslaget var dömt att misslyckas från början.

Detta har startat en diskussion om att driva förslaget vidare genom fördjupat samarbete (enhanced cooperation). Det är en mekanism som låter en mindre grupp medlemsstater driva ett fördjupat samarbete inom områden där det har visat sig omöjligt att göra gemensamt över hela unionen. Fördjupat samarbete har hittills enbart används vid två tillfällen, men det har visat sig vara ett intressant instrument för att utveckla flexibel integration och det kan mycket väl vara det enda sättet att driva förslaget vidare.

Denna uppsats behandlar Kommissionens förslag och regelverket för fördjupat samarbete. Den undersöker de tidigare användningarna av fördjupat samarbete för att se om de rättsliga utredningarna av de krav som reglerna ställer kan tillämpas på förslaget om en konsoliderad bolagsskattebas. Det kommer visas att fördjupat samarbete, som är ett relativt obeprövat rättsligt instrument, gör det svårt att dra några definitiva slutsatser om utgången av en sådan process, men att det är ett högst realistiskt alternativ för skapandet en gemensam konsoliderad bolagsskattebas och därmed fortsätta utvecklingen av den inre marknaden. (Less)
Abstract
In 2000, the European Union set out the strategic goal to become a more competitive, stronger economic region with sustainable growth in terms of economy and jobs. An important part in achieving this goal is the complete establishment of the internal market to fully promote freedom of movement of goods, capital, services and people within the European Union. The Commission has identified diversity among Member States’ tax system as a big obstacle in the internal market, creating trade barriers, distorting competition and hampering growth. To efficiently deal with these distortions, the Commission has proposed the adoption of a Common Consolidated Corporate Tax Base; a new optional tax system that will allow multinational company groups in... (More)
In 2000, the European Union set out the strategic goal to become a more competitive, stronger economic region with sustainable growth in terms of economy and jobs. An important part in achieving this goal is the complete establishment of the internal market to fully promote freedom of movement of goods, capital, services and people within the European Union. The Commission has identified diversity among Member States’ tax system as a big obstacle in the internal market, creating trade barriers, distorting competition and hampering growth. To efficiently deal with these distortions, the Commission has proposed the adoption of a Common Consolidated Corporate Tax Base; a new optional tax system that will allow multinational company groups in the European Union to comply only with one tax regime instead of a different set of rules for every country the company group is conducting business in.

The proposal is intended to stimulate business and remove fiscal impediments in the internal market, but it has given rise to the question if it is possible to implement at all due to the inability of the members of the European Union to agree on common tax measures. A number of Member States have shown that they are unwilling to proceed with the matter and since approximation of direct taxation requires unanimity, many have feared that the proposal was dead on arrival.

This has sparked the discussion of using enhanced cooperation to move forward with the proposal. It is a mechanism that allows for a smaller group of Member States to pursue deeper integration when it is found that it cannot be done throughout the Union as a whole. Having only been used twice before, enhanced cooperation is an interesting instrument of flexible integration that may very well be the only way to implement the Common Consolidated Corporate Tax base.

This thesis examines the Commission’s proposal and the provisions of the enhanced cooperation mechanism. It also examines the previous usage of enhanced cooperation and the legal assessments of the provision requirements to see if it is applicable to the Common Consolidated Corporate Tax Base proposal. It will be shown that enhanced cooperation, although being somewhat untested and therefore making it hard to draw any definitive conclusion regarding the outcomes of such a process, is a realistic option for establishing a Common Consolidated Corporate Tax Base and thus furthering the functioning of the internal market. (Less)
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author
Källberg, Alex LU
supervisor
organization
course
JURM02 20112
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
International Taxation, European Union, CCCTB, Common Consolidated Corporate Tax Base, Flexible Integration, Enhanced Cooperation
language
English
id
2277548
date added to LUP
2012-02-21 15:19:53
date last changed
2012-02-21 15:19:53
@misc{2277548,
  abstract     = {In 2000, the European Union set out the strategic goal to become a more competitive, stronger economic region with sustainable growth in terms of economy and jobs. An important part in achieving this goal is the complete establishment of the internal market to fully promote freedom of movement of goods, capital, services and people within the European Union. The Commission has identified diversity among Member States’ tax system as a big obstacle in the internal market, creating trade barriers, distorting competition and hampering growth. To efficiently deal with these distortions, the Commission has proposed the adoption of a Common Consolidated Corporate Tax Base; a new optional tax system that will allow multinational company groups in the European Union to comply only with one tax regime instead of a different set of rules for every country the company group is conducting business in. 

The proposal is intended to stimulate business and remove fiscal impediments in the internal market, but it has given rise to the question if it is possible to implement at all due to the inability of the members of the European Union to agree on common tax measures. A number of Member States have shown that they are unwilling to proceed with the matter and since approximation of direct taxation requires unanimity, many have feared that the proposal was dead on arrival.

This has sparked the discussion of using enhanced cooperation to move forward with the proposal. It is a mechanism that allows for a smaller group of Member States to pursue deeper integration when it is found that it cannot be done throughout the Union as a whole. Having only been used twice before, enhanced cooperation is an interesting instrument of flexible integration that may very well be the only way to implement the Common Consolidated Corporate Tax base.

This thesis examines the Commission’s proposal and the provisions of the enhanced cooperation mechanism. It also examines the previous usage of enhanced cooperation and the legal assessments of the provision requirements to see if it is applicable to the Common Consolidated Corporate Tax Base proposal. It will be shown that enhanced cooperation, although being somewhat untested and therefore making it hard to draw any definitive conclusion regarding the outcomes of such a process, is  a realistic option for establishing a Common Consolidated Corporate Tax Base and thus furthering the functioning of the internal market.},
  author       = {Källberg, Alex},
  keyword      = {International Taxation,European Union,CCCTB,Common Consolidated Corporate Tax Base,Flexible Integration,Enhanced Cooperation},
  language     = {eng},
  note         = {Student Paper},
  title        = {A Common Consolidated Corporate Tax Base through Enhanced Cooperation?},
  year         = {2011},
}