Debate continues on the European Commission’s proposals for a common system for calculating the tax base of businesses operating in the EU.
On the one hand a Common Consolidated Corporate Tax Base (CCCTB) could reduce compliance costs for some companies. On the other it would remove some of the tools at the disposal of individual countries for running our corporate tax system.
The CIOT’s views are set out in a five page submission to the House of Commons Treasury Committee published on Friday. The Treasury Committee was asked for its views by the Commons European Scrutiny Committee (ESC), which is looking at the proposal. To help them come to a view, the Treasury Committee asked professional bodies, including the CIOT, for their opinions.
The CIOT’s submission raises a number of problems with the Commission’s proposal, which are picked up by the Treasury Committee Chairman, Andrew Tyrie, in his letter to the ESC’s Chairman, Bill Cash. In particular the lack of evidence base for the proposal and the restrictions it would place on UK corporate tax policy.
You can read the CIOT’s submission here and the letter from Andrew Tyrie to the ESC here.
CIOT External Relations Manager
Monday 18 July 2011