Finance, Markets and Valuation
Not found
Title: Proposal for a Council Directive on a Common Consolidated Corporate Tax Base and its impact on European Cooperative Societies
Authors: AgustÃn Romero-Civera
DOI: Not found
Abstract:
The Proposal for a Council Directive on a Common Consolidated Corporate Tax Base Tax (CCCTB) 2011/0058 (CNS) COM (2011) 121 final, does not explicitly aim convergence of legislation. Nevertheless this Directive has led us to analyze which is the general line towards any European convergence regarding taxation of cooperatives. The analysis begins with the review of the development that led to the proposed Directive, the different proposals, and how they came to an agreement, where the basic scheme is to assign each country's tax base in a proportional way, based on a weighting of three items: a) tangible and intangible assets, b) labor costs and number of employees, and c) sales. Once the tax base is assigned to each country, they would maintain their current tax rates. This proposal, is inspired no doubt by countries in North America with a federal structure, like USA and Canada, and does not satisfy some countries that have low tax rates or that would only receive a small tax base. Furthermore, the paper analyzes the main criticisms and refinements that have been published so far on the items included and excluded in the tax base.
Keywords: Not found
