The European Parliament's economic affairs committee today voted to endorse legislative proposals for an EU common consolidated base for corporate tax (CCCTB). The Greens have long supported the introduction of a binding EU CCCTB and played a crucial role in securing the broad support of the committee for the proposals. After the vote, Green economic affairs spokesperson Philippe Lamberts said:
"Finally implementing a common corporate tax base would be a crucial step towards ending tax dumping in Europe, as well as reducing business costs. Today's vote brings the CCCTB closer to reality. A common corporate tax base would ensure greater transparency on corporate tax in the EU and reduce the scope for tax evasion, as well as reducing the administrative burden for tax compliant cross border firms.
"If it is to work, the CCCTB has to be binding. The EP has today voted for the CCCTB to be mandatory for all large enterprises, whilst leaving small and medium sized enterprises the option to choose to apply the common base if they wish.
"Introducing a common corporate tax base must only be the first step for tackling tax evasion and dumping in Europe. The CCCTB should be accompanied by a minimum corporate tax rate, which together would help end the tax dumping that enables corporations in the EU to avoid up to €100 billion in tax payments. The EP has today given a signal in this direction. We now look to the Commission and EU governments to be more proactive to this end."