Implications of the Common Consolidated Corporate Tax Base Introduction on Tax Revenues (case study on Romania)
Implications of the Common Consolidated Corporate Tax Base Introduction on Tax Revenues (case study on Romania)

Summary/Abstract: For solving the existing difficulties in corporate income taxation, the European Commission proposed the introduction of measures for coordination, solution contested by some Member States but supported by most professionals and many organizations representing the interests of European employers. Disputes in connection with the introduction of the "Common Consolidated Corporate Tax Base" are determined by the uncertainty regarding its effects. Since corporate income tax has an important contribution in forming the central budget revenues, the "Common Consolidated Corporate Tax Base" is a challenge for Romanian public authorities. The Romanian government has not expressed until the moment a choice in this respect. In this paper we intend to take stock of the main points of view about the implications of introducing the common consolidated corporate tax base made by specialists and to estimate the effects of the EU formula apportionment on corporate tax revenues in Romania. For the particular conditions of 2008 we concluded that Romania would register an increase in tax revenue. Accumulating that advantage with the other benefits of the common consolidated corporate tax base we believe that the Romanian authorities should support the actions to coordinate the corporate income tax systems in the European Union.

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