Moscovici: CCCTB Is A Tool Against Tax Avoidance

EU Tax Commissioner Pierre Moscovici has described the proposed common consolidated corporation tax base as a “decisive tool against corporate tax avoidance.”

Moscovici made the comment during a speech on tax fairness. He said the CCCTB will provide companies with a single rulebook for calculating their taxable profit throughout the EU.

According to Moscovici, “Large multinationals will no longer be able to exploit mismatches between national systems, benefit from preferential tax regimes and play with transfer pricing rules to reduce their own tax liability.”

Moscovici said that he did not think the EU could set a minimum corporate tax rate, as “the rule of unanimity forbids it.” However, he stressed that there must be a level playing field between companies and taxpayers.

The Commission intends first to introduce harmonized rules on the calculation of a company’s tax base in all EU member states. After that, tax revenues would be collected and distributed among member states under a formulary apportionment approach, whereby revenues would be allocated based on factors such as turnover, sales, and employment.