Skip to content

Information for students, faculty and staff regarding COVID-19. (Updated: 31 March 2021)

Published: 08 Nov, 2016

A Common Consolidated Corporate Tax Base one of the possible alternatives for future EU funding

NEWS Strengthening the link between smart, sustainable and inclusive growth and the EU system of own resources, the introduction of CCCTB as a tax-based own resource could contribute to the decrease in the existing sustainability gaps. These are the findings of the recent FairTax working paper “Sustainability-oriented Future EU Funding: The case of a CCCTB”.

The paper is elaborated by FairTax researchers Danuše Nerudová, Veronika Solilová and Marian Dobranschi, all from the Department of Accounting and Taxes at Mendel University in Brno.
“The results our study show that the introduction of a CCCTB-based own resource might considerably contribute to the closing of currently existing sustainability gaps: CCCTB could make tax competition more just, and by limiting base erosion and profit shifting it could create a space for decreasing the tax burden on labour. It could also help facilitate tax compliance and it would make the fight against tax evasion and tax fraud more effective. Moreover, with respect to the EU budget, the simulations shows, that the tax revenues from CCCTB might fully replace VAT-based own resources” says Danuše Nerudová.

CCCTB replacing VAT-based own resource

To research the revenue potential of the CCCTB, the researchers designed a model based on idea of a remittance. The system foresees the replacement of the VAT-based own resource (resp. GNI-based own resource) through the transfer of a part of the CCCTB revenues raised on the national level to the EU budget. The results of the research show that the CCCTB-based own resource would be able to fully replace the VAT-based own resource, with the only exception of Cyprus.
“The largest benefit in connection to the introduction of a CCCTB system in the EU would be the fact that it could contribute very strongly to the limitation of current base erosion and profit shifting of multinational enterprises. It would be a significant step towards limiting the space for aggressive tax planning” Danuše Nerudová continues.

On October 25, 2016, the European Commission proposed a major corporate tax reform for the EU.
What do you think would be the largest risk for Europe if the EU introduces the CCCTB?
"A large risk might be an improper implementation of the CCCTB by EU Member States, which could lead to the situation where the common rules in practice will not be “common”. EU must ensure that the situation that came after the implementation of common VAT system, where in fact incorrect implementation led to the huge national differences in the system, will not be repeated. Another risk lies in the design of the recent EU proposal. Contrary to the announced obligatory system for everyone in 2015, the current proposal makes CCCTB obligatory only for companies with the total revenues of more than 750 million euros. This would mean that a number of quite big companies still would have the possibility to use existent loopholes in the national taxation systems for aggressive tax planning” Danuše Nerudová concludes.

Download FairTax paper No.04: Sustainability-oriented Future EU Funding: The case of a C(C)CTB

For more information, please contact Danuše Nerudová:
or FairTax Coordinator Åsa Gunnarsson:

Editor: Elin Andersson