'Ccctb and third countries' - the topic of the International Conference organized by the Institute for Austrian and International Tax Law, Vienna University of Economics and Business in the period 30th-31st of january 2012 at Vienna
| Author | Ioan Lazar |
| Position | Faculty of Law and Social Sciences, ?1 Decembrie 1918' University of Alba-Iulia, Associated Lecturer INPPA, Bucharest; Arbitrator, Mures County Chamber of Commerce and Industry Lawyer Alba County Bar Association |
| Pages | 1-4 |
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„CCCTB AND THIRD COUNTRIES” - THE TOPIC
OF THE INTERNATIONAL CONFERENCE ORGANIZED
BY THE INSTITUTE FOR AUSTRIAN AND
INTERNATIONAL TAX LAW, VIENNA UNIVERSITY
OF ECONOMICS AND BUSINESS IN THE PERIOD 30TH-31ST
OF JANUARY 2012 AT VIENNA1
Lecturer dr. Ioan LAZ;R2
In the period 30th-31st of January 2012 in the ceremony hall (Festsaal) of Vienna
University of Economics and Business (Witrschaftsuniversität Wien) took place the
conference with international participation organized by the Institute for Austrian and
International Tax Law (Österreichisches & Internationales Steuerrecht) on the topic of
the common consolidated corporate tax base (CCCTB and Third Countries)3. The
conference had as object the presentation – by well-known specialists, university
professors and researchers – of the most important third country related issues of the
European Commission’s directive proposal regarding the common consolidated
corporate tax base of the undertakings having their fiscal residence in the EU or the
subsidiaries situated in the EU of companies resident in third countries4.
1 The present paper was previously published by the author in the “Curierul Fiscal” Law Journal no.
3/2012, with the title “International Conference organized by the Institute for Austrian and International
Tax Law, Vienna University of Economics and Business „CCCTB and Third Countries” - 30th-31st of January
2012, Vienna”, pp. 51-53.
2 Faculty of Law and Social Sciences, „1 Decembrie 1918” University of Alba-Iulia, Associated
Lecturer INPPA, Bucharest; Arbitrator, Mureş County Chamber of Commerce and Industry Lawyer Alba
County Bar Association. Email: avocat_lazar@yahoo.com
3 The denomination CCTB represents an abbreviation for the formula Common Consolidated Corporate
Tax Base (a common tax base for company taxation). The concept refers to a common tax system applicable
to company taxation throughout the EU; the consolidated character of the tax base is based on the fact that the
taxation system implies the summarization of all of the profits and losses of the undertakings or groups of
undertakings from different Member States on whose territories they are carrying out their activities, in order
to establish a global profit or loss for the entire activity which takes place within the EU. The tax base
calculation is carrieed out with the summarization of the incomes of the undertakings and the deduction of the
expenses and other categories of deductible amounts, the objective being the creation of a net taxable profit.
4 We are mentioning here the fact that the common consolidated company tax base refers to the
companies which have their fiscal residence in the EU and the EU based subsidiaries of the undertakings
from third countries.
2
The discussions of the conference had as starting point the European Commission’s
directive proposal published at 16th of March 20115, regarding the establishement of a
common computing system of the tax base for profit taxation of the companies which are
activating in the European Union and the application of the „one-stop shop system” for
filling of fiscal declarations.
According to the Commission, the new regulation will permit undertakings to
consolidate their profits and losses at a European level, as long as the profits and losses in
case were realized on the territory of the European Union. The first proposals, regarding
the elaboration of a unic set of norms for computing the common consolidated corporate
tax base for the companies carrying out their activites in the EU, took place in September
2004 and were analyzed at the ECOFIN’s informal meeting. The conclusion of the
discussions was the neccesity to establish a work group of the European Commission on
this topic. The current directive proposal came out after the publication of several notices
of the European Commission on this topic in 2007 and after the consultations which took
place with members of the business and academic environment.
The major aim of the directive proposal was the identification of a unic modality of
tax base computation for the profit tax of companies, able to remove in a systematic way
the principle obstacles which exists in the case of profit taxation of the undertakings
which are carrying out their activities in more than one EU Member State of the Internal
Market, by offering common rules for the computation of tax base.
The major obstacle regarding the profit taxation of companies carrying out
commercial activities with transborder character in the UE is the existence of 27 different
fiscal systems in the EU, every system having his own specific rules regarding the
determination of tax base.
The common tax base proposed by the European Commission comes with a common
set of rules applicable to undertakings carrying out their activities at the territory of the
EU. Computing the profits and losses of the companies takes place with the
consolidation of profits and losses realized at the level of the European Union.
Companies opting-in for the CCCTB system will not be obliged anymore to respect the
different fiscal rules regarding tax base calculation of the Member States in which they
are carrying out their activities , instead they will respect the unic set of normes of the
CCCTB.
Fiscal reimbursement could be also requested with the help of a unic fiscal
declaration in conformity with the „one –stop shop” system. The tax base which will be
determined in the CCCTB system will be shared between the Member States in which the
undertaking is carrying out activities and will be taxed after the taxation rates applicable
in every of the mentioned Member States6. Filling fiscal declarations, carrying out tax
audits and the following up of the fiscal reimbursement process will be performed by the
tax authorities of principal Member State, where the undertaking is carrying out his
economic activities. The European Commission directive proposal includes clear
procedural normes regarding the opting-in modalities for the optional CCCTB system, the
5 European Commission, Brussells, 16.3.2011, COM (2011) 121 final 2011/0058(CNS), Proposal for a
Council Directive on a Common Consolidated Corporate Tax Base (CCCTB).
6 For more details regarding the common corporate consolidated tax base of undertakings and the
answers to the frequently asked questions, please see the press release of the European Commision
MEMO/11/171 from 16 March 2011, Brusselles.
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transmission of fiscal declarations, the harmonization of the relevant formulas and the
coordination of audits.
The most important advantages of the common corporate consolidated tax base
consists in: the avoidance of birocracy and the compliance costs associated with different
taxing rules and systems applicable in different Member States regarding tax base
computing and the transmission of fiscal declarations; the avoidance of conflict of
jurisdictions between national tax authorities and the double taxation of companies;
increasing the transparency of company taxation in the EU and the avoidence of harmful
fiscal competition; increasing the global competitivenes of the EU and the attractivity of
the European Union from the perspective of direct foreign investments; the facilitation of
the activity of undertakings in other Member States of the European Union, by reducing
the establishement costs of a new subsidiary; the elimination of the complex transfer
pricing system applicable in the present for intra-group transactions; stimulating research
and developement activities and innovation by the deductible character of this kind of
expenses.
Taking into consideration the fact that the rules of common consolidated corporate
tax base are applicable in an equal manner to the subsidiaries of third country companies
resident in the EU, as far as these undertakings fulfills the califications conditions
mentioned in the directive proposal – the international conference organized by the
Institute for Austrian and International Tax Law treats actual issues.
The workings of the international conference took place in two days annd were
presented nine major discussion topics, moderated by the members of the conference
scientific committee: his Excellence prof. Michael Lang and his well-known colleagues
prof. Pasquale Pistone, prof. Joseph Schuch, prof. Claus Staringer and prof. Alfred
Storck.
The discussion topic of every panel session was introduced by the session chairman
and presented afterwords by the keynote speakers, authors of a scientific article on the
topic of the panel session. The speech of the authors was briefly discussed by the
commentators (experts from non-EU countries, members of the Member States’ fiscal
administrations, EU officials, university professors of famous universities, employees of
great international companies, representatives of law firms and economic consultancy
frims 7 etc.).
The first day of the conference was dedicated to aspects regarding the taxation of EU
resident companies and non-reisdent companies, to witholding taxation, transparent
7 Between the participants were university professors from: Harward Law School (USA), University of
Zürich (Switzerland), University of Mannheim (Germany), University of Salzburg (Austria), Maastricht
University (Estonia), Universitatea din Uppsala (Sweden), University of Bern (Poland), University of
Economics from Wroclaw (Poland), Sofia University (Bulgaria), Sorbona Law School (France), University
of Bocconi (Italy), University Paris I – Pantheon Sorbonne (France), Victoria University of Wellington (New
Zeeland), New York University School of Law (USA), Faculty of Law University of Georgia (USA), Tilburg
University (Netherlands), Maribor University (Slovenia), University of Bologna (Italy), University of
Bergamo (Italy), Victoria Univeristy (Canada), Mendel University of Brno (Czech Republic), Queen Mary
Univeristy of Londra (Great Britain), European University Institute Firenze (Italy), University of Salermo
(Italy), Varşovia University (Poland); experts from the European Commission and OECD, representatives
from the minister of finance from Germany, Italy and Denmark and other representatives of international law
firms and economic consultancy firms from France, Italy, Netherlands, USA, Turkey, Austria, Germany and,
Denmark.
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entities and reimbursement of gifts granted to caritable entities from third countries. After
the workings of the conference the participants ended the working day in a traditional
Austrian atmosphere in the „10er Marie”, restaurant situated in the hystoric center of
Vienna, where the Mayor of Vienna organized a feast in the honour of the event. The
second day of the conference was allocated to discusssions of the panel sessions
regarding active transfer issues in third countries and interest deductibilities.
The seriousness, rigor and professionalism of the Austrian collegues certainly
deserves our appreciation and is a model for organizing similar events in our country.
