Pan European tax system demanded

Finance directors, tax directors and tax managers from over 400 companies
across the EU have backed European
Commission proposals for a harmonized, pan European corporate tax system, a
study by KPMG has found.

Those surveyed included some of the largest companies from all 27 EU
countries and Switzerland, who were asked their view of EC plans for a
Common
Consolidated Corporate Tax Base (CCCTB).

The plans propose that the profits of businesses operating in more than one EU
member state should be calculated according to a single EU-wide formula, rather
than the 27 different formulae used today. Profits would then be reallocated to
the countries in which the businesses are active, to be taxed at those
countries’ tax rates.

The idea was supported by 78% of respondents across Europe.

Tax professionals in the Czech Republic, Denmark and Spain were 100% in
favor, along with 96% in Italy, 90% in Greece, Luxembourg, Poland, Romania,
Slovenia and Sweden, 84% in Germany and 80% in Austria, Finland, Hungary and
Portugal.

Among the large economies, the UK was most sceptical, with 62% percent in
favour and 32 percent against.

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