Use of the Common and Consolidated Corporate Tax Base at European Union Level. Implications for Romania

Abstract

In recent years, the European Union is taking more and more decisive tax harmonization measures for the Member States and for combating aggressive tax planning. The measures are supported by the European Commission and some Member States on the grounds that the single rules will simplify the calculation and reporting of corporate income tax, increase national budgetary receipts and decrease administrative costs. The evolution of the economy in the digital sphere has also been taken into account, which requires new approaches regarding taxation and the definition or redefinition of certain terms currently used. Opponents of the amendments invoke the principle of subsidiarity in Community law, as well as the application of provisions different from those issued by the OECD in terms of transfer prices –the BEPS project (Base Erosion and Profit Shifting). Also, the harmonization of the accounting provisions can be a significant obstacle, the criteria for recognizing the income and expenses can be substantially different in the new context.

Keywords

• tax harmonization
• aggressive tax planning
• digital economy
• turnover tax
• common corporate tax base.