1. 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 , grant agreement No. FairTax

2. 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 , grant agreement No FairTax

3. 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 , grant agreement No FairTax

4. 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 , grant agreement No FairTax

5. 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 , grant agreement No FairTax

6. 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 , grant agreement No FairTax

9. 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 , grant agreement No FairTax

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