towards Unitary taxation in the EU: CCCTB Common Consolidated Corporate Tax Base

Aurore Chardonnet 17 January 2016

Page 2

TAX AND INEQUALITY

• Extreme inequality prevents tackling poverty

• Fair tax systems provide public services and redistribute

wealth reduce inequality

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TAX AND INEQUALITY

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TAX COMPETITION AND INEQUALITY

In 1990, the G20 average

statutory corporate tax rate

was 40 percent;

in 2015, it was 28.7 percent.

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RACE TO THE BOTTOM

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TAX COMPETITION

6th of february 2015: OECD

members reach an agreement on a

nexus approch to patent boxes. This part of BEPS plan

5: Harmful tax practices

5th of June 2015: Switzerland

introduces an updated draft corporate tax

reform. The refrom abolishes the cantonal tax regimes and

includes a patent box .''Tax-Related

Measures to Strengthen the

Competitiveness of Switzerland as

a Business Location" -

Federal deparment of

finance

5th of october 2015: Final report

of the OECD's BEPS project is

published.

13th of October 2015: Ireland

annouces Knowledge

development box as a new tax

incentive "shows Ireland’s ability to

retain our core strengths, while keeping a keen

competitive edge in attracting and retaining quality

jobs and investment to our country" -Noonan

30th of January 2016: Belgium

announces plans te lower CIT to 20% ."By lowering the

CIT to 20 or 22 percent we will

mark Belgium on map again" -Van

Overtveldt

29th of February 2016: Luxembourg announces CIT will be lowerd to 19%

in 2017 and 18% in 2018.“The

government will closely monitor

international developments

and will consider the adjustments

that will be needed for the business. ” -Gramegna

16th of March 2016: The United

Kingdom announces to lower it's CIT rate to 17% by 2020."Britain is blazing a trail (...) Let the rest of the world catch up." -

Osborn

17th of June: The third tax reform in

Switzerland is Accepted in parliament . Switzerland

introduces a patent box and notional

interest deduction to replace the

existing tax regime. to "Prevent an

exodus of companies" -

Federal deparment of

finance

20th of September: The

cabinet informs the parlement on the need to lower the

CIT."The Netherlands need to take a step to

stay competitive" -Wiebes

18th of November:

Hungary announces plans to cut the CIT to 9%

making it the lowest rate in the EU. “With these taxes, Hungary

will offer the European Union’s

best fiscal conditions,” -Orban said.

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TAX COMPETITION AND INEQUALITY

Tax battles are on:

• The tax rate

• The tax BASE

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MORE COOPERATION IS NEEDED

ON TAX IN EUROPE AND BEYOND

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WHY THIS IS RELEVANT FOR NGOs

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CCTB AND CCCTB IMPACTS

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WILL CCCTB HAPPEN?

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Thank for your attention