Should the EU implement a minimum corporate taxation directive?
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Journal Title
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Volume Title
School of Business |
D4 Julkaistu kehittämis- tai tutkimusraportti tai -selvitys
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Author
Date
2021
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Language
en
Pages
41
Series
Aalto University publication series BUSINESS + ECONOMY, 2/2021
Abstract
The century old international tax system is in the middle of being rebuilt. Between the hope for a compromise and the fear of a tax war breaking out, this article inquires whether the EU should implement a minimum corporate taxation directive along the lines of the OECD GLOBE proposal. This question has legal and political dimensions. On the one hand, Art. 115 TFEU, which would be the basis for such a directive, demands an EU minimum taxation regime to promote the Internal Market. The article suggests that this may succeed. On the other hand, Art. 115 TFEU requires unanimity in the Council. Thus, and given the heterogeneity of Member States’ interests, additional tax policy reasons favouring such a directive are needed. Considering expectable reactions of taxpayers in a competitive environment and taking account of potential developments outside the EU, the author concludes that, overall, the implementation of an EU minimum taxation regime may – especially as a safeguard of origin based taxation – benefit the EU and all of its Member States. With the credible enforceability of minimum taxation rules being key, the author suggests EU action to establish minimum corporate taxation even if all EU Members States support the OECD proposal. Date and Place21. April 2021; Espoo, FinlandAcknowledgementsThe author thanks Marjaana Helminen, Dennis Weber, Jan Klabbers, Karine Caunes, Noora Mäki, and Linda Sydänmaanlakka and two unknown peer-reviewers for discussing a draft version of the article and giving invaluable comments. The author thanks Suomen veromiehet - Finlands beskattningsmän ry for their financialsupport.Description
Keywords
law, business law, corporate taxation, EU
