The European Commission renewed the position on avoiding of the common approach to the use of Common Consolidated Corporate Tax Basesystem by all members of the European Union (EU).
The position of the Commission is based on the principle of preserving the sovereign rights of member states to set their own tax rates, simultaneously providing for strict rules for evaluation of the tax revenues by national supervisory authorities and the obligation of international groups to submit information on the total income from all activities, carried out within the EU, to the tax authorities of one country.
The position of the European Commission provides for the reduction of fiscal liabilities in one country that is a member of the EU, due to losses incurred from business activities in the other one. At the same time, it is required the compliance with the “strict requirements”, one of which is the redistribution of income in that country where it was obtained.
The use of Common Consolidated Corporate Tax Basesystem will be mandatory for all EU companies and corporations, which annual turnover of funds exceeds 750 million euros.
The European Commission proposals should be agreed unanimously by the Council of the EU ministers, in order to take effect.