Multinationals have failed to include the affects of the EU's common consolidated corporate tax base (CCCTB) will have on their business, a PricewaterhouseCooper's survey has revealed.

The poll found that nearly half of multinational companies (49%) have still not considered how a CCCTB will affect their business, yet more than three quarters (67%) agree that CCCTB will happen, believing it will arrive some time in the near future.

CCCTB was born of an informal Ecofin meeting back in September 2004, with details of the ‘likely’ finally agreed version outlined in a EC working in July.

'UK based multinational companies may ignore CCCTB at their peril, but in reality the train has already left the station, and is almost certain to arrive at some point in the near future. The Commission has already outlined its plan for CCCTB to be an agenda item in the September 2008 Ecofin meeting – this puts things on track for CCCTB to become a reality as early as 2011,' said Peter Cussons, PwC tax partner.

More than one fifth (21%) of tax directors from European-based multinational companies, who were questioned at the annual PricewaterhouseCoopers Tax Symposium, also believe that CCCTB will reduce their effective tax rate (ETR).

Only 24% are convinced a CCCTB will increase their ETR. The trend continues to be one of confidence.

Advantages of a CCCTB directive include automatic cross-border loss offset, the potential to reduce compliance costs of perhaps up to 20 or so EU Member States’ tax systems, reduce transfer pricing issues and simplify EU corporate structuring.

Further reading:

Read more about the CCCTB here

Read the more about the PwC survey