Cover von: Company-Tax Coordination cum Tax-Rate Competition in the European Union
Wolfgang Eggert, Andreas Haufler

Company-Tax Coordination cum Tax-Rate Competition in the European Union

Rubrik: Fiscal Policy in Action
Jahrgang 62 (2006) / Heft 4, S. 579-601 (23)
Publiziert 09.07.2018
DOI 10.1628/001522106X172706
Veröffentlicht auf Englisch.
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Beschreibung
This paper reviews the recent theoretical literature that analyzes the European Union's policy to eliminate preferential corporate-tax regimes and the proposal to introduce a consolidated EU tax base with formula apportionment for the taxation of multinational firms. Since neither proposal includes a harmonization of corporate-tax rates, a core issue is how tax competition between member states will be affected by these partial coordination measures. The conclusions from our review are supportive of the EU's ban on preferential tax regimes, but the economic incentive effects of a switch to formula apportionment are found to be ambiguous.