Corporate Tax Harmonization in Europe: It's All About Compliance

Author: Mintz J.

Source: International Tax and Public Finance, Volume 11, Number 2, March 2004 , pp. 221-234(14)

Publisher: Springer

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Abstract:

Although the hope may be to reduce economic distortions in captial markets, the primary focus of corporate tax consolidation among member states of a federation is to reduce compliance and administrative burdens. For example, the Canadian provinces have sufficient flexibility to determine their corporate tax policies, and effective tax rates on captial vary considerably by province, but they still have achieved a considerable degree of harmonization of tax bases. The European Union should also try to implement a consolidated tax base for companies. A compulsory base would be best, but it is likely that the optional consolidated tax base is most practical at this time.

Keywords: international tax co-ordination; business taxes; multinational firms

Document Type: Research article

DOI: http://dx.doi.org/10.1023/B:ITAX.0000011401.67566.14

Affiliations: 1: J.L. Rotman School of Management, University of Toronto and the C. D. Howe Institute., Email: jmintz@CDHOWE.org

Publication date: 2004-03-01