Title: Is the common (consolidated) corporate tax base a suitable solution for SMEs?

Authors: Veronika Solilová; Danuše Nerudová

Addresses: Mendel University in Brno, Faculty of Business and Economics, Zemedelska 1, 613 00 Brno, Czech Republic ' Mendel University in Brno, Faculty of Business and Economics, Zemedelska 1, 613 00 Brno, Czech Republic

Abstract: The common (consolidated) corporate tax base (C(C)CTB) represents one of the most ambitious projects in the history of corporate taxation in the European Union, which introduced cross-border loss offsetting and the consolidation of profits or losses with apportionment between Member States via an apportionment formula. The implementation of the C(C)CTB system can bring the advantages, such as reduced compliance costs of taxation, unified rules for tax base construction, the establishment of the possibility of cross-border loss offsetting, the elimination of transfer pricing issues and others. With respect to SMEs, we research whether SMEs would prefer to opt for C(C)CTB system, mainly in the context of advantages which are offered by this system. Based on the result of our research we can conclude that SMEs would opt for the CC(C)TB system.

Keywords: EU; European Union; tax system; CCTB; CCCTB; common (consolidated) corporate tax base; SMEs; cross-border loss offsetting; apportionment formula; transfer pricing; single entity approach; corporate tax liability; Amadeus database.

DOI: 10.1504/IJTGM.2018.095803

International Journal of Trade and Global Markets, 2018 Vol.11 No.3, pp.200 - 212

Received: 24 Oct 2017
Accepted: 30 Mar 2018

Published online: 07 Sep 2018 *

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