Nerudova, D., Solilova, V. and Dobranschi, M. Sustainability-oriented EU Taxes as Genuine Own Resource to Finance the EU Budget: The case of a CCCTB Nerudova, D., Solilova, V. and Dobranschi, M. The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No. FairTax 649439

Structure The need for reform and the options Current situation of corporate taxation in the EU CCCTB as an option Calculation methodology Revenue potential of CCCTB – GNI replacement – VAT replacement 6. Conclusion The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No FairTax 649439

Need for the reform Restriction of EU´s financial autonomy – EC(2011), Cipriani (2014) MS aiming at maximizing their net positions rather than on VA - Heinemann, Mohl and Osterloh (2008) or Iozzo, Micossi and Salvemini (2008) Lack of the links between the system of own resources and aims set by EU policies – Schratzenstaller (2013) System is too complicated - Fuest, Heineman and Ungerer (2015) Lack of transparency - Fuest, Heineman and Ungerer (2015) Threat to credibility – Schratzenstaller (2013) Ability to pay principle is not respected – EC (2011), Begg (2011) EU taxes might help to decrease sustainability gaps tax competition, tool for fight with tax evasion and tax fraud, tax compliance, increasing labor taxation The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No FairTax 649439

Current situation in corporate taxation Consolidation regimes: full consolidation pooling Intra-group loss transfer group taxation scheme not available The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No FairTax 649439

CCCTB as an option with respect to EU budget not discussed yet but discussed EUCIT Cattoir (2009) – EUCIT can generate 3 % of GDP in 2008 EC (2013) – EUCIT can generate EUR 15 bn with the tax rate lower than 2 % Design of the EU-tax-based system - Raddatz and Schick (2003) Surcharge system The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No FairTax 649439

Methodology of calculation Allocation formula Regression Imputation Monte Carlo method The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No FairTax 649439

Conclusion CCCTB system could generate the tax base of EUR 810,962 mil in the whole EU VAT-based own resource replacement: portion remitted to EU budget would be lowest in case of UK (4.51 %) highest in case of Greece (55.49 %). Cyprus is able to generate only EUR 5.44 mil from CCCTB, while its VAT-based contribution amounts to EUR 23 mil. GNI-based own resource replacement: national tax revenues from the CCCTB would not reach in Cyprus, Germany, Greece, Ireland, Lithuania and Slovenia Cyprus would not probably be able to generate enough CCCTB revenues to replace 10 % of GNI-based contribution by CCCTB contribution The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No FairTax 649439

Thank you for your attention! The project is funded by the European Union’s Horizon 2020 research and innovation programme 2014-2018, grant agreement No FairTax 649439