A Comprehensive Solution for a Targeted Problem: A Critique of the European Union's Home State Taxation Initiative
European Taxation, Vol. 48, p. 630, 2008
54 Pages Posted: 2 Jul 2008 Last revised: 14 Apr 2015
Date Written: 2008
This Article examines the European Commission's Home State Taxation and CCCTB initiatives. It argues that both proposals undermine the long-term objective of attaining a consolidated European corporate tax regime. It suggests an alternative strategy, which offers a comprehensive formulary-tax-allocation-solution in one of the hard to tax sectors, such as the financial sector. This strategy requires more efforts and political risk-taking, but would better promote the long-term objective of a consolidated EU corporate tax regime.
Keywords: Corporate Taxation, Home State Taxation, CCCTB, Common Consolidated Tax Base, Formulary allocation, Unitary allocation, tax allocation, EU corporate tax reforms
JEL Classification: K33, K34
Suggested Citation: Suggested Citation