The Challenges of Consolidating the Corporate Taxation within EU

The utopia EU – perfect integrated market indirectly implies precise tax systems harmonization. The European Commission proposal for the common corporate consolidate tax base CC(C)TB has more ambitious goals than those stated in the Organization for Economic Cooperation and Development Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (July 2018). The CC(C)TB directive proposes redistribution of the consolidated profits for the multinational companies based on calculation formula, depending on the volume of sales, the number of employees and the capital invested. The proposal determined intense discussions, because some of the member states will lose tax revenue when part of taxable profits is allocated to other states.
The paper analyses the vulnerabilities of this major change in international corporate taxation if it is applied regionally/locally, and it argues in favor of the upper global level of coordinating fiscal policies.