Direktivet om et fælles konsolideret selskabsskattegrundlag

Sandra Damgaard

Student thesis: Master thesis


Today the tax area in the EU is far from being harmonized, even though it has been a wish from the EU since 1962 where The Neumark Report ”Tax Harmonisation in The European Economic Community” was created. The absence of common corporate tax rules often leads to overtaxation and double taxation, and it imposes heavy administrative burdens on businesses with activities in more than one European country. This is due to the fact that those companies must conform to each country’s tax rules and must comply with transfer pricing formalities using the arm’s length approach. Furthermore, this situation creates disincentives for investments in the EU, and as a result, counteracts the priorities set in “Europe 2020 – a strategy for smart, sustainable and inclusive growth”. In order to overcome some of these weaknesses, the Commission published on March 16, 2011 a proposal to a directive on a Common Consolidated Corporate Tax Base (CCCTB), based on TEUF art. 115. Among other things, CCCTB should relieve some of the administrative burdens that a corporate group in Europe experiences and also reduce overtaxation and double taxation. According to the Commission, the CCCTB is an important initiative on the path towards removing obstacles to the completion of the Single Market. In this thesis, it has been analyzed whether the directive on a Common Consolidated Corporate Tax Base should be approved in its present form on the basis of an analysis of the directive’s fulfillment of its purpose to relieve the administrative burdens and prevent overtaxation and double taxation. Furthermore, the evaluation of the approval has been carried out on the basis of an analysis of the directive’s obsoleting of the Danish rules about international joint taxation, transfer pricing and CFC-taxation. The directive on a Common Consolidated Corporate Tax Base should not be approved without an alteration. There exists a worthy idea and purpose behind the directive, but because of the directive’s inflexible definition of a corporate group, many corporate groups in Europe cannot benefit from it. If a corporate group has to fulfill the inflexible demands to enter into the consolidation, it will only be able to consolidate with a smaller part of its group members and hereby get very limited benefit from the consolidation. In this case, the corporate group is still object to overtaxation and double taxation, and the administrative burdens will not lighten. However, the directive should not be entirely rejected but instead be altered, so it can improve the EU’s competitiveness and strengthen the Single Market.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2012
Number of pages85