The call for feedback comes as part of the implementation of the Commission's Action Plan for Fair and Efficient Corporate Taxation which was presented in June this year. A wide range of views is sought from businesses, civil society and other stakeholders. The Commission intends to come forward with revised legislation next year.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs said: "I remain convinced that the CCCTB is the best instrument for fighting cross-border tax abuse and tax fraud and for easing the administrative burden on companies operating in the EU. We very much hope that the views collected in this public consultation will help us to present in 2016 a revised proposal that is balanced and beneficial to all."
This consultation wants to gather views, in particular, on the extent to which a CCCTB could function as an effective tool against aggressive tax planning without compromising its initial objective of making the Single Market a more business-friendly environment. Feedback is also welcomed on the proposed 'two-step approach' of the initiative and on the criteria that could determine which companies should be subject to a mandatory CCCTB. The consultation will also look at ideas on how to address the 'debt bias' and the type of rules that would best foster Research & Development activity.
The public consultation will remain open until 8 January 2016.
What is the Common Consolidated Corporate Tax Base (CCCTB)?
The Commission strategy to re-launch its proposal for the CCCTB rests on the belief that companies operating across borders within the EU could benefit from a far simpler way to calculate their taxable profits. Under a CCCTB, businesses would have to comply with just one EU system for computing their taxable income, rather than the current situation where they have to comply with different rules in each Member State in which they operate.
The aim of the strategy is to kick-start negotiations in the Council which have stalled largely because of the scale of the original proposal back in 2011.
For this reason, a new proposal for a CCCTB would consist of a step-by-step approach. First, the Commission will propose a common tax base without consolidation. This should make the proposal easier for Member States to agree. Once the common base is secured, consolidation – meaning that Member States would be allowed to tax their share of the base at their own corporate tax rate - will be introduced.
The main focus of the CCCTB is on facilitating EU and third-country business, primarily those active in more than one Member State within the EU. In addition to creating a business friendly environment by reducing the administrative burden, compliance costs and legal uncertainties for companies, the CCCTB would also function as an effective tool against aggressive tax planning.
Link to public consultation: