At the meeting of the Ecofin Council of Tuesday 8 November, a number of European countries expressed concern at the potential impact of a common consolidated corporate tax base on their tax revenue.
Spain, Denmark, Romania and Ireland voiced such concerns, with the Danish representative being the most categorical, saying that they would have problems if the CCCTB reduced their tax base, which the country has spent several years building up. He went on to say that he feared the distribution key, whereby the European countries will share out the taxation of the consolidated base of a group of companies for the whole of the EU, could lead to a drop in tax revenue.
Romania, for its part, said that the CCCTB would have a significant impact on tax revenue in certain member states and that some of them could be disadvantaged. Belgium did not take the floor, but according to our source, it has doubts about the budgetary impact forecast by the European Commission (as marginal).
Ireland also stressed the risk of shrinking tax bases. This country, like the Netherlands and Luxembourg, also said that it had not been given enough time to study the Commission's proposal and stressed the need for an internal debate before taking position.
Vice-President of the Commission Valdis Dombrovskis told a press conference that the Commission's impact assessment did not tell the whole story. The expectation, he explained, is that the CCCTB will be budgetarily neutral in terms of tax revenue in the EU, but the result will depend on the implementation of the CCCTB and the number of companies that sign up to it on a voluntary basis (certain companies will be required to do so). He also anticipates considerable increases in tax revenue, as the CCCTB will help to counter harmful tax schemes such as patent boxes.
Luxembourg, moreover, expressed its satisfaction at the fact that the proposal lays particular emphasis on SMEs by means of tax incentives. The two-stage approach to consolidation is also to its liking. Italy, Poland, Ireland, the Czech Republic and Spain also welcomed this progressive approach. On behalf of the Commission, however, Pierre Moscovici said that he refuses to see the consolidation aspect, left until later on, ending up being postponed indefinitely.
Hungary, additionally, said that it did not see how this proposal can help the competitiveness of the EU. (Original version in French by Élodie Lamer)