Abstract
In March 2011, the European Commission launched a proposal for a Common Consolidated Corporate Tax Base (CCCTB). However, a Common Corporate Tax Base (CCTB), leaving consolidation and apportionment out of consideration, appears to be a more realistic proposition for corporate tax harmonization in Europe. Using the European Tax Analyzer (ETA), we simulate the impact of the CCTB on the effective tax burden in Belgium. The results show that the adoption of the CCTB increases the Belgian effective tax burden by 16%. This remarkable increase is mainly driven by the fact that national tax deductions are not allowed under CCTB. This study allows policymakers to gain insight into the size effects of certain corporate tax measures and contributes to the current discussion on corporate tax harmonization in Europe.
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Notes on contributors
Annelies Roggeman
Annelies ROGGEMAN is PhD students at the University College Ghent/Ghent University, where they carry out research concerning the evaluation of the Common Consolidated Corporate Tax Base.
Isabelle Verleyen
Isabelle VERLEYEN is PhD students at the University College Ghent/Ghent University, where they carry out research concerning the evaluation of the Common Consolidated Corporate Tax Base.
Philippe Van Cauwenberge
Philippe VAN CAUWENBERGE is a Professor at the Department of Accountancy and Corporate Finance of the Ghent University. His research has been published in journals like Public Choice, Abacus and Public Money and Management.
Carine Coppens
Carine COPPENS is the Head of the Department of Financial Management at the University College Ghent, Faculty of Business and Information Management.