Company Tax (Kurumlar Vergisi)

- General Overview
- Key documents 
- Common tax base 
- Home State Taxation 
- Transfer pricing 
- Harmful tax competition 
- Parents-Subsidiary Directive 
- Mergers directive 
- Interests and Royalties directive 
- Double taxation conventions 
- Conferences  

- Overview

In October 2001 the Commission presented its new plans for the coming years for company taxation in the European Union in a Communication (COM(2001) 582 of 23/10/2001) based on a detailed study (see also press release IP/01/1468 and frequently asked questions MEMO/01/335). The Communication identified several steps which could be taken to remove individual tax obstacles to cross-border trade in the Internal Market and the Commission and Member States are currently discussing these. However, the Commission also concluded that in the longer term Member States should agree to allow EU companies to use a single consolidated base for computing tax on their EU-wide profits.

The Commission has since been engaged in intensive follow-up work both on various individual measures to address specific problems in the company tax field and on its long-term proposals for a common tax base.
The Commission presented a follow-up Company tax Communication in November 2003 (COM (2003) 726 - see also press release IP/03/1593 and frequently asked questions MEMO/03/237) confirming the commitment taken in the 2001 strategy,

·       reviewing its efforts to remove obstacles affecting businesses operating within the Internal Market and
·       presenting ideas for a pilot scheme that would allow small and medium-sized enterprises to use the tax rules of their home state for computing their EU-wide taxable profits.

It also announced plans for work with Member States and businesses on using financial accounts as a starting point for a single tax base and on possible arrangements for apportioning a single base between different Member States.

Background

Unlike indirect taxes, the EC Treaty does not specifically call for direct taxes (income and corporate taxes) to be harmonised. However, Article 94 of the EC Treaty provides for approximation of such laws, regulations or administrative provisions of the Member States as directly affect the establishment or functioning of the common market. In any event, national tax rules must respect the fundamental freedoms provided for the EC Treaty.
Since the founding of the European Communities, company taxation has received particular attention as an important element for the establishment and the completion of the Internal Market.

Studies like the Neumark Report of 1962 and the Tempel Report of 1970 were followed by a number of initiatives designed to achieve a limited degree of harmonisation of the corporate tax system. The Commission presented a proposal for a directive in 1975 and two, focussed more on loss compensation, in 1984 and 1985. Those were later withdrawn. A draft proposal of 1988 for the harmonisation of the tax base of enterprises was never tabled, due to the reluctance of most Member States. However, EU Member States did early on accept that economic integration will require greater cooperation in the field of tax collection, and Council Directive 77/799/EEC provides for mutual assistance between national tax authorities.

In 1990 the Commission asked a Committee of independent experts chaired by former Dutch Finance Minister Onno Ruding to examine whether differences in corporation tax caused distortions in the Internal Market, particularly as regards investment decisions and competition, and to suggest ways of overcoming this problem. The Committee made specific recommendations (see Report of the Committee of Independent Experts on Company Taxation, Commission of the European Communities , Official Publications of the EC, ISBN 92-826-4277-1, March 1992). The need to eliminate double taxation, ensure effective taxation and prevent tax evasion was recognised by the Council, but there was little progress on some of the more concrete proposals contained in the "Ruding" report.

Recognising the lack of success in progressing existing initiatives, the Commission Communication on company taxation in 1990 (SEC(90) 601) suggested that, subject to the principle of subsidiarity, all initiatives should be defined through a consultative process with the Member States.

On that basis, following Commission proposals which originated in the late 1960s, three measures - two directives and a convention - were finally adopted in July 1990 the and the Arbitration Convention 90/436/EEC.

A proposal on loss-offset cross-border in the Council (COM(90) 595) has been withdrawn because a revised proposal is forthcoming. In 1994, the Commission withdrew a first proposal aimed at abolishing withholding taxes levied on cross-border interest and royalty payments between associated companies of different Member States, presenting a new one in 1998 which has since been adopted.

The 1990 approach was developed further in 1996/1997 in a Commission Communication (COM(97) 495 of 01/10/1997). The 'tax package', and notably the Code of Conduct for business taxation, have introduced a new dimension to the discussion.
The Single-Market driven approach was supplemented with the objectives of stabilising Member States' revenues and promoting employment which are now taken up and re-assessed in the 2001 Communication on the priorities of EU tax policy. In 1999/2000 the Council, in order to supplement the ongoing work on the 'tax package' which had been agreed by EU Finance Ministers in December 1997, requested the Commission to carry out the comprehensive study on company taxation referred to above.

·       You may find at the following link the complete list of legislative measures in the company tax field.
·       Click to find the complete list of company tax proposals.
·       Research project "The Changing Governance Architecture of International and EU Direct Taxation (TAXGOV)" with a specific focus on company taxation and harmful tax competition.
·       Other events/links.

- Key documents

This page contains a selection of documents and papers of major political and strategic relevance to company taxation in the
European Union.   

     
In October 2001 the Commission presented its new plans for the coming years for in the European Union in a Communication (COM(2001) 582 of 23/10/2001) based on a detailed study (see also press release and frequently asked questions ). The Communication identified several steps which could be taken to remove individual tax obstacles to cross-border trade in the Internal Market and the Commission and Member States are currently discussing these. However, the Commission also concluded that in the longer term Member States should agree to allow EU companies to use a single consolidated base for computing tax on their EU-wide profits. The Commission has since been engaged in intensive follow-up work both on various individual measures to address specific problems in the company tax field and on its long-term proposals for a common tax base.The Commission presented a follow-up Company tax Communication in November 2003 (COM (2003) 726 - see also press release and frequently asked questions ) confirming the commitment taken in the 2001 strategy,

·       reviewing its efforts to remove obstacles affecting businesses operating within the Internal Market and
·       presenting ideas for a pilot scheme that would allow small and medium-sized enterprises to use the tax rules of their home state for computing their EU-wide taxable profits. It also announced plans for work with Member States and businesses on using financial accounts as a starting point for a single tax base and on possible arrangements for apportioning a single base between different Member States. Unlike indirect taxes, the EC Treaty does not specifically call for direct taxes (income and corporate taxes) to be harmonised. However, Article 94 of the EC Treaty provides for approximation of such laws, regulations or administrative provisions of the Member States as directly affect the establishment or functioning of the common market. In any event, national tax rules must respect the fundamental freedoms provided for the EC Treaty.Since the founding of the European Communities, company taxation has received particular attention as an important element for the establishment and the completion of the Internal Market.Studies like the Neumark Report of 1962 and the Tempel Report of 1970 were followed by a number of initiatives designed to achieve a limited degree of harmonisation of the corporate tax system. The Commission presented a proposal for a directive in 1975 and two, focussed more on loss compensation, in 1984 and 1985. Those were later withdrawn. A draft proposal of 1988 for the harmonisation of the tax base of enterprises was never tabled, due to the reluctance of most Member States. However, EU Member States did early on accept that economic integration will require greater cooperation in the field of tax collection, and Council Directive 77/799/EEC provides for mutual assistance between national tax authorities.In 1990 the Commission asked a Committee of independent experts chaired by former Dutch Finance Minister Onno Ruding to examine whether differences in corporation tax caused distortions in the Internal Market, particularly as regards investment decisions and competition, and to suggest ways of overcoming this problem. The Committee made specific recommendations (see Report of the Committee of Independent Experts on Company Taxation, Commission of the European Communities , Official Publications of the EC, ISBN 92-826-4277-1, March 1992). The need to eliminate double taxation, ensure effective taxation and prevent tax evasion was recognised by the Council, but there was little progress on some of the more concrete proposals contained in the "Ruding" report.Recognising the lack of success in progressing existing initiatives, the Commission Communication on company taxation in 1990 (SEC(90) 601) suggested that, subject to the principle of subsidiarity, all initiatives should be defined through a consultative process with the Member States.On that basis, following Commission proposals which originated in the late 1960s, three measures - two directives and a convention - were finally adopted in July 1990 the and the Arbitration Convention 90/436/EEC.A proposal on loss-offset cross-border in the Council (COM(90) 595) has been withdrawn because a revised proposal is forthcoming. In 1994, the Commission withdrew a first proposal aimed at abolishing withholding taxes levied on cross-border interest and royalty payments between associated companies of different Member States, presenting a new one in 1998 which has since been adopted.The 1990 approach was developed further in 1996/1997 in a Commission Communication (COM(97) 495 of 01/10/1997). The 'tax package', and notably the Code of Conduct for business taxation, have introduced a new dimension to the discussion.The Single-Market driven approach was supplemented with the objectives of stabilising Member States' revenues and promoting employment which are now taken up and re-assessed in the 2001 Communication on the priorities of EU tax policy. In 1999/2000 the Council, in order to supplement the ongoing work on the 'tax package' which had been agreed by EU Finance Ministers in December 1997, requested the Commission to carry out the comprehensive study on company taxation referred to above.

·       You may find at the following link the complete list of legislative measures in the company tax field.
·       Click to find the complete list of company tax proposals.
·       Research project "The Changing Governance Architecture of International and EU Direct Taxation (TAXGOV)" with a specific focus on company taxation and harmful tax competition.
·       Other events/links.This page contains a selection of documents and papers of major political and strategic relevance to company taxation in the European Union.

COM (2005) 702 23/12/2005	Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee: Tackling the corporation tax obstacles of small and medium-sized enterprises in the Internal Market - outline of a possible Home State Taxation pilot scheme. See also annex (SEC(2005) 1785 ).
COM (2003) 726	Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee - An Internal Market without company tax obstacles: achievements, ongoing initiatives and remaining challenges.
COM (2001) 582 23/10/2001	Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee. Towards an Internal Market without tax obstacles. a strategy for providing companies with a consolidated corporate tax base for their EU-wide activities.
COM (2001) 260 23/05/2001	Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee on Tax policy in the European Union - Priorities for the years ahead.
SEC(2001) 1681 23/10/2001	Commission Staff Working Paper - Company Taxation in the Internal Market. See also the Annex .

- Common Tax Base

·       Background
·       Practical Information on the Common Consolidated Corporate Tax Base Working Group (CCCTB WG)
·       Meeting reports

The European Commission believes that the only systematic way to address the underlying tax obstacles which exist for companies operating in more than one Member State in the Internal Market is to provide companies with a consolidated corporate tax base for their EU-wide activities. Targeted solutions have many merits and would go some way towards remedying the tax obstacles. However, even if all of them were implemented, they would not address the fundamental problem of dealing with up to 25 different tax systems.
The Commission´s Directorate-General responsible for Taxation and the Customs Union are currently working on two main comprehensive approaches to remove tax obstacles which companies face in the Internal Market:

·       The Common Consolidated Tax Base and
·       a possible pilot scheme for Home State Taxation for Small and Medium Sized Enterprises.

Background

This policy was established in 2001 (COM(2001) 582 of 23/10/2001) and confirmed in 2003 (COM(2003) 726 of 24/11/2003).
A public consultation was held in 2003 concerning the use of International Accounting Standards as a possible starting point for a common EU tax base.

In July 2004 a non-paper on the common tax base was presented by the Commission and discussed at the informal ECOFIN meeting in September 2004. The discussions revealed broad support for the creation of a Commission Working Group to progress work on the common tax base.

Common Consolidated Corporate Tax Base Working Group (CCCTB WG) - Practical Information

What will the CCCTB WG do?

The overall objective of the CCCTB WG is

·       to examine from a technical perspective the definition of a common consolidated tax base for companies operating in the EU.
·       It will discuss the basic tax principles,
·       the fundamental structural elements of a common consolidated tax base and
·       other necessary technical details such as a mechanism for 'sharing' a consolidated tax base between Member States.
As a group of experts the role of the Working Group is to provide technical assistance and advice to the Commission.

Who is taking part?

Experts from all twenty five Member States and the Commission Services will participate in the Working Group. Contributions will be made in a technical capacity and no Member State will be called upon to make political commitments. Participation by a Member State does not commit it to implement a common consolidated tax base. The Commission is also keen to ensure contribution to the work by experts from business and academia in December 2005 the Working Group met in an extended format for the first time. 

How will the CCCTB WG function?

The CCCTB WG is established initially for a period of three years and approximately four meetings a year are planned. In addition to these meetings the Working Group may decide to set up sub-groups to consider issues in more depth and these will meet on an ad-hoc basis and report back to the main Working Group. Further information is available in the Working Papers discussed at the first meeting on 23 November 2004.

How can I keep up to date on progress?

Working Documents prepared by the Taxation and Customs Union Directorate General for discussion in meetings of the Working Group will be published on this web-site shortly after each meeting.
The document published will be the one discussed at the meeting, subject to any factual corrections or clarifications. In many cases the documents will include a series of questions and comments and contributions are welcome. Please send them to taxud-e1@cec.eu.int .
Working Documents prepared by experts from Member States will be published if the preparer agrees. Documents prepared or endorsed by the Working Group will be published after agreement by the members of the Working Group.
A summary record of each meeting will be published after it has been agreed by the members participating. These summary records will normally be published before the subsequent meeting.

Meetings of the Working Group on the Common Consolidated Corporate Tax Base (CCCTB WG)

meeting	date
5	07-08/12/2005
4	23/09/2005
3	02/06/2005
2	10/03/2005
1	23/11/2004

Sixth meeting of the CCCTB WG is planned for early March 2006

- Home State Taxation

The European Commission believes that the only systematic way to address the underlying tax obstacles which exist for companies operating in more than one Member State in the Internal Market is to provide companies with a consolidated corporate tax base for their EU-wide activities. Targeted solutions have many merits and would go some way towards remedying the tax obstacles. However, even if all of them were implemented, they would not address the fundamental problem of dealing with up to 25 different tax systems.

The Commission´s Directorate-General responsible for Taxation and the Customs Union are currently working on two main comprehensive approaches to remove tax obstacles which companies face in the Internal Market:

·       The Common Consolidated Tax Base and
·       a pilot scheme for Home State Taxation for Small and Medium Sized Enterprises.

Home State Taxation for SMEs

The European Commission has adopted a Communication (COM/05/702) that presents a possible solution to the compliance costs and other company tax difficulties that Small and Medium Sized Enterprises (SMEs) face when doing business across borders. The Commission suggests that Member States allow SMEs to compute their company tax profits according to the tax rules of the home state of the parent company or head office. An SME wishing to establish a subsidiary or branch in another Member State would as a result be able to use the familiar tax rules of its home State when calculating its taxable profits (see also Impact Assessment SEC/05/1785 , press release IP/06/11, and frequently asked questions MEMO/06/4).

The "Home State Taxation" system would be voluntary for both Member States and companies and would run for a five-year pilot phase. The Commission's 2004 European Tax Survey (see IP/04/1091 and European Tax Survey/Taxation Paper n° 3 ) showed that cross-border activity leads to higher company tax and VAT compliance costs for companies and that costs are proportionately higher for SMEs than for large companies.

The concept of Home State Taxation presented by the Commission is based on the idea of voluntary mutual recognition of tax rules by EU Member States. Under this concept, the profits of a group of companies active in more than one Member State would be computed according to the rules of one company tax system only, i.e. the system of the Home State of the parent company or head office of the group.

An SME wishing to establish a subsidiary or permanent establishment in another Member State would therefore be able to use only the tax rules with which it is already familiar.

·       The definition of an SME would be that commonly used in the EU-companies with fewer than 250 staff, a turnover of €50 million or less, and/or a balance sheet total of €43 million or less.
·       The Home State Taxation scheme would not mean taxation in the Home State only. It would simply mean that an SME's tax base (i.e. taxable profits) would be calculated in accordance with the rules of the Home State. Each participating Member State would then tax at its own corporate tax rate its share of the profits determined according to its share of the total payroll and/or turnover.
·       Introducing the scheme on a pilot, time-limited, basis would test the practical merits of the concept for SMEs and its broader economic benefits for the EU while limiting the administrative costs and potential risks for Member States. The Commission's Communication provides detailed elements of such a Home State Taxation pilot scheme.
·       Member States that agreed to introduce this scheme could do so via a bilateral or multilateral agreement, by temporarily supplementing existing double taxation treaties or multilateral conventions, or by concluding a new multilateral convention.

In the Commission's opinion, the concept of Home State Taxation appears to be a very promising way of tackling the tax
problems that hamper SMEs when they are expanding across borders. The most common problems are compliance costs and absence of relief for cross-border losses.

The potential overall economic benefit for the Internal Market from such a measure could be considerable. The Commission has in its Lisbon Action Plan (see IP/05/973) given a new impetus to achieving the Lisbon objectives, including in the tax field. It has repeatedly highlighted the important role of small and medium-sized enterprises in the EU's economic development and has called for broad policy actions in favour of SMEs. The European Council of 23 March 2005 repeated this call.

Background

Home State Taxation was first described by the Commission in 2001 (COM(2001) 582 of 23/10/2001) and further analysed in 2003 (COM(2003) 726 of 24/11/2003).
A public consultation on Home State Taxation was held in 2003.
In June 2004, a further questionnaire and a detailed " Outline of a possible experimental application of Home State Taxation to small and medium-sized enterprises " were published. A summary report of the replies received in response to this questionnaire is available.

Moreover, in July 2004 a non-paper on the pilot scheme idea was presented by the Commission and submitted to the informal ECOFIN meeting in September 2004. However, no substantial discussion of the non-paper took place.
The idea of Home State Taxation has originally been developed in academic research - see: Lodin, S.-O. and Gammie, M., Home State Taxation, IBFD Publications, Amsterdam , 2001. The summary of this book is freely available.

- Transfer pricing

Tax problems resulting from transfer pricing have gained increasing importance as an Internal Market issue.
The deepening of the Internal Market and the growing number of new technologies and business structures at national and international level has aggravated these problems over the last few years. There is convincing evidence that applying transfer prices for tax purposes is complicated and problematic in practice.
On the following web pages you will find further information on the tax problems involved and solution proposed:

·       Transfer Pricing Forum
·       Transfer Pricing and the Arbitration Convention

- Transfer Pricing Forum

·       Latest Information
·       Background
·       Practical information on the EU Joint Transfer Pricing Forum (JTPF)
·       Meetings of the EU Joint Transfer Pricing Forum (JTPF)
·       Key documents 
 
Latest Information

The European Commission on 10 November adopted a proposal for a Code of Conduct that would standardise the documentation that multinationals must provide to tax authorities on their pricing of cross-border intra-group transactions ('transfer pricing' documentation).

The proposal, that has been developed on the basis of work in the EU Joint Transfer Pricing Forum (see IP/02/1105), would reduce significantly the tax complications that companies face when trading with associated enterprises in other Member States. Companies frequently complain about the onerous and divergent documentation obligations with which they have to comply in such cases in the different Member States involved.

The Code would be a political commitment and would not affect Member States' rights and obligations or the respective spheres of competence of the Member States and the EU. For further information see the press release (IP/05/1403), frequently asked questions (MEMO/05/414 ), the full text of the proposal (COM/2005/543), and the report (SEC (2005) 543 final) on the activities of the EU Joint Transfer Pricing Forum.

Background

The Company Tax Study (SEC(2001) 1681), has identified in detail (part III, chapter 5, pages 255 to 284) the increasing importance of transfer pricing tax problems as an Internal Market issue.
The obstacles and problems identified are varied in nature but all are increasingly important and call for action. The deepening of the Internal Market and the growing number of new technologies and business structures at national and international level has aggravated these problems over the last few years. There is convincing evidence that applying transfer prices for tax purposes is complicated and problematic in practice. A common feature of many of the specific individual problems is that closer co-operation between tax administrations and business could lead to substantial progress. In addition, the improvement of Member States' co-ordination in order to reduce compliance costs and lessen the uncertainty relating to transfer pricing are considered of major importance in the short term.
The Commission has therefore proposed in its Communication "Towards an Internal Market without tax obstacles - A strategy for providing companies with a consolidated corporate tax base for their EU-wide activities" (COM (2001) 582 of 23 October 2001), the establishment of a "EU Joint Transfer Pricing Forum" with Member States and business representatives.

Council adopts conclusions

The General Affairs Council of 11 March 2002 adopted Council Conclusions welcoming the initiative of the Commission to set up the EU Joint Transfer Pricing Forum.
 
Practical information on the JTPF 

What will the JTPF do ?

The overall objective of the JTPF is a more uniform application of transfer pricing tax rules within the EU.

Although all Member States apply and recognise the merits of the OECD "Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations", the different interpretations given to these Guidelines, often give rise to cross border disputes which are detrimental to the smooth functioning of the Internal Market and which create additional costs both for business and national tax administrations.
Similarly, the concrete application of the so-called "Arbitration Convention" (a specific instrument on the elimination of double taxation in connection with the adjustment of profits of associated enterprises) proves problematic and needs improvement.
Bringing together all parties concerned to discuss the issues at stake will lead to a better common understanding and will allow to identify possible non-legislative improvements to the practical problems in order to reduce compliance cost and prevent disputes.
 
Who is taking part in the JTPF ?

Besides the experts from all Member States, the Commission, in agreement with a selection board composed of high level representatives of the Council Presidency, the Commission and the UNICE Tax Committee, has appointed a Chairman and 10 experts from business as Members of the JTPF for a renewable period of two years and will invite representatives from applicant countries and the OECD as observers. 
  
How will the JTPF function and what will be the outcome?

There will be two to three meetings a year and the JTPF should aim to work on the basis of consensus.
The outcome will be pragmatic, non-legislative solutions within the framework of the OECD Guidelines to the practical problems posed by transfer pricing practices in the EU. The result of the work undertaken by the JTPF will be transmitted on a regular basis to the Council which will assess the need for appropriate action. 

Key Documents

·       Commission Communication (COM/2004/297 of 23/04/2004) on the work of the EU Joint Transfer Pricing Forum in the field of business taxation from October 2002 to December 2003 and on a proposal for a Code of Conduct for the effective implementation of the Arbitration Convention (90/436/EEC of 23 July 1990)
·       Commission Communication (COM/2005/543 of 7/11/2005) on the work of the EU Joint Transfer Pricing Forum on transfer pricing documentation for associated enterprises in the EU and proposal for a Code of Conduct on transfer pricing documentation for associated enterprises in the EU
·       Report on the Activities of the EU Joint Transfer Pricing Forum in the Field of Documentation Requirements
·       List of independent persons of standing, eligible to become a Member of the advisory commission as referred to in Article 7 (1) of the Arbitration Convention
·       Report on the re-entry into force of the Arbitration Convention.

- Transfer Pricing and the Arbitration Convention

1. On 23 April 2004, the Commission adopted a Communication to the Council, the European Parliament and the European Economic and Social Committee on the work of the EU Joint Transfer Pricing Forum in the field of business taxation from October 2002 to December 2003 and on a proposal for a Code of Conduct for the effective implementation of the EU Arbitration Convention (90/436/EEC of 23 July 1990) (COM(2004) 297 final of 23 April 2004).
The Code of Conduct applies in cases where an EU Member State's tax administration increases the taxable profits of a company from its cross-border intra-group transactions, for example by making a transfer pricing adjustment. It would ensure a more effective and uniform application by all EU Member States of the 1990 Arbitration Convention (90/436/EEC) by establishing common procedures concerning:

·       the starting point of the three-year period which is the deadline for a company suffering double taxation to present its case to the relevant Member State's tax administration;
·       the starting point of the two-year period during which Member States' tax administrations must attempt to reach an agreement that eliminates the double taxation that is the subject of the complaint;
·       the arrangements to be followed during this mutual agreement procedure (the practical operation of the procedure, transparency and taxpayer participation); and
·       the practical arrangements for the second phase of the dispute resolution procedure provided for in the EU Arbitration
Convention that must follow if there is no mutual agreement between the tax authorities within two years (i.e. the establishment and functioning of the advisory commission that must then arbitrate in the case).

The proposed Code, which also contains a recommendation to EU Member States on the suspension of tax collection during cross-border dispute resolution procedures, would recommend that Member States apply its rules also to the dispute settlement provisions in their double taxation treaties with each other.

The Code of Conduct would be a political commitment and would not affect the Member States' rights and obligations or the respective spheres of competence of the Member States and the Community.
The Commission proposal was discussed under the Dutch Council Presidency and adopted by the Council of Ministers in November 2004.

2. The Council has also finalised a draft Convention to extend the scope of the Arbitration Convention to the EU Member States that joined the EU on 1 May 2004. After agreement by the Council, it will have to be signed and ratified by each of the 25 EU Member States. The draft Convention contains a provision allowing bilateral application of the Convention between those Member States that have ratified it, which will allow the Convention to become partially applicable even if the implementation of the Convention in all 25 Member States may be a lengthy process.

Background

The origin of the Arbitration Convention was the Commission's 1976 proposal for a directive to eliminate double taxation in the case of transfers of profits between associated enterprises in different Member States (Official Journal C 301 of 21 December 1976) and the White Paper of 1985 on the completion of the Internal Market.

After long negotiations in the Council, the Commission proposal was transformed from a Directive into an inter-governmental Convention and it was signed on 23 July 1990 (Convention 90/436/EEC on the elimination of double taxation in connection with the adjustment of profits of associated enterprises, Official Journal L 225 of 20/08/1990, p. 10 ).

The Arbitration Convention was in force from 1 January 1995 until 31 December 1999 for an initial period of five years. It establishes a procedure to resolve disputes where double taxation occurs between enterprises of different Member States resulting from an upward adjustment of profits of an enterprise in one Member State. Most bilateral double taxation treaties include a provision for corresponding downward adjustments of profits of the associated enterprise concerned but do not impose a binding obligation on the Contracting States to eliminate the double taxation.

The EU Arbitration Convention provides for mandatory arbitration in cases where Member States cannot reach mutual agreement on the elimination of double taxation within two years of the date on which the case was first submitted to one of the competent authorities of the Member States involved. The Convention thus improves the conditions for cross-border activities in the Internal Market.

Nevertheless, the Commission services study "Company Taxation in the Internal Market" (SEC(2001) 1681) has identified in detail (part III, chapter 5, pages 255 to 284) some important difficulties that can make its practical implementation less efficient than desirable.

Following this report, the Commission proposed in its Communication "Towards an Internal Market without tax obstacles - a strategy for providing companies with a consolidated corporate tax base for their EU-wide activities" (COM(2001) 582 final of 23 October 2001 ) the establishment of the EU Joint Transfer Pricing Forum to examine issues that could be addressed without legislation, in particular rules related to the implementation of the Arbitration Convention. The Forum's first year of work resulted in the recommendation for a Code of Conduct on the implementation of the Arbitration Convention, that the Commission proposed to the Council (see above).

With the accession of three new EU Member States in 1995, the Arbitration Convention had to be supplemented by an additional Convention that was signed on 21 December 1995 and provided for the accession of Austria, Finland and Sweden to the Arbitration Convention (Convention of 21 December 1995 concerning the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the Convention on the elimination of double taxation in connection with the adjustment of profits of associated enterprises (Official Journal C 26 of 31/01/96).

Several months before the expiration of the first five-year application period of the Arbitration Convention, the Council adopted a Protocol to the Arbitration Convention that provides for an automatic extension of the Convention by periods of five years unless a Contracting State opposes (Protocol of 25 May 1999 amending the Convention of 23 July 1990 on the elimination of double taxation in connection with the adjustment of profits of associated enterprises (Official Journal C 202, 16/07/99).
This Protocol was, in spite of its timely signature, only ratified recently by all 15 Member States. The Arbitration Convention will therefore, re-enter into force, with retroactive effect from 1 January 2000, in November 2004.

For the draft Convention to extend the scope of the Arbitration Convention to the 10 new EU Member States, see point 2. above.

- Harmful tax competition

* Code of Conduct
* OECD - Harmful tax pratices
* Other EU work related to harmful tax pratices
* Fiscal State Aid

* Code of Conduct

The Code of Conduct for business taxation was set out in the conclusions of the Council of Economics and Finance Ministers (ECOFIN) of 1 December 1997. The text of these conclusions
The Code is not a legally binding instrument but it clearly does have political force. By adopting this Code, the Member States have undertaken to

·       roll back existing tax measures that constitute harmful tax competition and
·       refrain from introducing any such measures in the future ("standstill").

The Council, when adopting the Code, acknowledged the positive effects of fair competition, which can indeed be beneficial. Mindful of this, the Code was specifically designed to detect only such measures which unduly affect the location of business activity in the Community by being targeted merely at non-residents and by providing them with a more favourable tax treatment than that which is generally available in the Member State concerned. For the purpose of identifying such harmful measures the
Code sets out the criteria against which any potentially harmful measures are to be tested.

The Code of Conduct requires Member States to refrain from introducing any new harmful tax measures ("standstill") and amend any laws or practices that are deemed to be harmful in respect of the principles of the Code ("rollback"). The code covers tax measures (legislative, regulatory and administrative) which have, or may have, a significant impact on the location of business in the Union.

The criteria for identifying potentially harmful measures include:

·       an effective level of taxation which is significantly lower than the general level of taxation in the country concerned;
·       tax benefits reserved for non-residents;
·       tax incentives for activities which are isolated from the domestic economy and therefore have no impact on the national tax base;
·       granting of tax advantages even in the absence of any real economic activity;
·       the basis of profit determination for companies in a multinational group departs from internationally accepted rules, in particular those approved by the OECD;
·       lack of transparency.

The EU's Finance Ministers established the Code of Conduct Group (Business Taxation) at a Council meeting on 9 March 1998, under the chairmanship of UK Paymaster General Dawn Primarolo, to assess the tax measures that may fall within the scope of the Code of Conduct for business taxation.

In a report of November 1999 the Group identified 66 tax measures with harmful features (40 in EU Member States, 3 in Gibraltar and 23 in dependent or associated territories).
The text of this report .

Member States and their dependent and associated territories have now introduced or are in the process of introduction revised or replacement measures in substitution for the 66 measures.
For beneficiaries of those regimes on or before 31/12/2000, a "grand-fathering" clause has been provided under which benefits have to lapse no later than 31/12/2005, independently of whether or not they were granted for a fixed period. Some extensions of benefits for defined periods of time beyond 2005 have been agreed for measures in Member States and their dependent and associated territories.
Since then, the Code of Conduct Group has been monitoring standstill and the implementation of rollback and reported regularly to the Council.

* OECD - Harmful tax practices

Following a report in 1998 ("Harmful Tax Competition: An Emerging Global Issue") the OECD (Organisation for Economic Cooperation and Development) created a special forum, "Forum on Harmful Tax Practices".

To end harmful tax practices the work of the Forum has focussed on three areas:

·       Harmful tax practices in Member Countries;
·       Tax havens;
·       Involving non-OECD economies.

The Forum has produced three progress reports. Furthermore, together with cooperative tax havens the Forum has produced a "Model Tax Agreement on Exchange of Information in Tax Matters".
All relevant information (including reports) on this work is available on this website.

* Other EU work related to harmful tax practices

In September 2004 the Commission adopted a Communication on Preventing and Combating Financial and Corporate Malpractice (COM (2004) 611), which provides a strategy for co-ordinated action in the financial services, company law, accounting, tax, supervision and enforcement areas, to reduce the risk of financial malpractice (see press release IP/04/1164 ) . In the tax field, the Commission suggests more transparency and information exchange in the company tax area so that tax systems are better able to deal with complex corporate structures. The Commission also wishes to ensure coherent EU policies concerning offshore financial centres, to encourage these jurisdictions also to move towards transparency and effective exchange of information.

* Fiscal State Aid

As part of the commitment in the Code of conduct on business taxation (cf. paragraph J of the Code) the Commission committed itself to publishing guidelines on the application of the State Aid rules to measures relating to direct business taxation - these were adopted by the Commission on 11 November 1998 (see Commission notice 98/C 384/03 in Official Journal C 384 of 10/12/1998 p. 3) .
The latest Commission report on the action taken by it in the field of tax aid was adopted by the Commission on 9 February 2004.

Background

The tax systems in Member States also have to be in line with Community State aid rules. According to Article 87, paragraph 1 of the EC Treaty any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the common market. State aid rules apply regardless of the form the aid is given in, i.e. any kind of tax relief can constitute State aid if the other criteria are fulfilled.

However, even if a measure fulfils the criteria for being State aid there are a number of situations where an aid can be deemed as compatible State aid (cf. Article 87, paragraphs 2 and 3 of the EC Treaty). Furthermore, the Commission has issued a large number of regulations, notices, guidelines, frameworks and communications in the area of State aid. In particular, in the area of direct taxation the Commission has issued a notice on the application of State aid rules to measures relating to direct business taxation in 1998 and a report from 2004 on the implementation of that notice (see link below to the website of the Directorate-General for Competition).

It is the Directorate-General for Competition that is mainly responsible for State aid (including most tax measures). However, in cases falling under the competence of the Directorate-General for Agriculture, Fisheries or Energy and Transport those directorates are responsible. Questions concerning specific cases should therefore be asked directly to those directorates.

- Parent companies and their subsidiaries in the European Union

·       Introduction
·       An updated list of companies that are covered by the parent subsidiary Directive
·       Relaxing the conditions for exempting dividends from withholding tax
·       Eliminating double taxation for subsidiaries of subsidiary companies
·       Implementation Deadline

* Introduction

On 22 December 2003, the Council adopted Directive 2003/123/EC to broaden the scope and improve the operation of the Council Directive 90/435/EEC on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States.
The 1990 Directive was designed to eliminate tax obstacles in the area of profit distributions between groups of companies in the EU by:

·       abolishing withholding taxes on payments of dividends between associated companies of different Member States and
·       preventing double taxation of parent companies on the profits of their subsidiaries.
The new Directive, based on a Commission proposal of 8th September 2003 (see press release IP/03/1214), contains three main elements:
·       updating the list of companies that the Directive covers;
·       relaxing the conditions for exempting dividends from withholding tax (reduction of the participation threshold); and
·       eliminating double taxation for subsidiaries of subsidiary companies.

* An updated list of companies that are covered by the parent subsidiary Directive

The new Directive updates the list of companies covered by the parent-subsidiary Directive to include:

·       certain co-operatives,
·       mutual companies,
·       certain non-capital based companies,
·       savings banks,
·       funds, and
·       associations with commercial activity.

The new list also includes:

·       the European Company (Council Regulation (EC) 2157/2001 and Council Directive 2001/86/EC) which may be created from 2004 (see also press release IP/01/1376) ; and
·       the European Co-operative Society (Council Regulation (EC) 1435/2003 and Council Directive 2003/72/EC) which may be created from 2006 (see also press release IP/03/1071)
This means that companies and co-operatives operating in more than one Member State will have the option of establishing themselves as single entities under Community law.

* Relaxing the conditions for exempting dividends from withholding tax

Currently, certain dividends paid by a subsidiary company to its parent company are exempted from withholding tax. This is also the case where the two companies are located in different Member States. The new Directive relaxes the conditions of this exemption.
Currently, the parent company must hold at least 25% of the shares in the subsidiary company for the exemption to apply. The minimum shareholding will be reduced gradually to 10%.

The minimum shareholding will be:

·       20% from 1 January 2005 to 31 December 2006 ;
·       15% from 1 January 2007 to 31 December 2008 ; and
·       10% from 1 January 2009.

* Eliminating double taxation for subsidiaries of subsidiary companies

The new Directive renders more complete the mechanism for the elimination of double taxation of dividends received by a parent company located in one Member State from its subsidiary located in another.

At present, since a subsidiary company is taxed on the profits out of which it pays dividends, the Member State of the parent company must either:

·       exempt profits distributed by the subsidiary from any taxation or
·       impute the tax already paid in the Member State of the subsidiary against its own tax.

The new Directive deals with imputing tax paid by subsidiaries of these direct subsidiary companies. Member States must impute against the tax payable by the parent company any tax on profits paid by successive subsidiaries downstream of the direct subsidiary. This ensures that the objective of eliminating double taxation is better achieved.

* Implementation Deadline

Member States must ensure that the necessary national implementing legislation is in force by 31 December 2004 at the latest.
Council Directive 90/435/EEC also applies to new Member States joining the European Union from 1 May 2004. As transition provisions were not provided as part of accession negotiations, Directive 2003/123/EC will apply to the accession countries with effect from 1 January 2005.
The list of companies and taxes in the countries that became part of the EU on 1 May 2004 and that are to be included within the scope of the Directive are contained in the Act of Accession and became part of the Directive on 1 May 2004 . Further information including an analysis of recent withholding tax developments together with a list of withholding tax rates may also be found in a working paper of the European Parliament: "Taxation in Europe: Recent Developments ".

Finally, Council Directive 90/435/EEC has already been the subject of interpretation by the European Court of Justice in the following caselaw:

·       Commission v France – avoir fiscal (Case 270/83)
·       Denkavit International BV , VITIC Amsterdam BV and Voormeer BV v Bundesamt für Finanzen. (Joined cases C-283/94, C-291/94 and C-292/94)
·       Leur-Bloem v Inspecteur der Belastingdienst/Ondernemingen Amsterdam 2 (Case C-28/95)
·       Futura Participations SA and Singer v Administration des contributions (Case C-250/95)
·       Imperial Chemical Industries plc (ICI) v Colmer (Case C-264/96)
·       Epson Europe BV (Case C-375/98)
·       Metallgesellschaft Ltd, Hoechst v Commissioners of Inland Revenue (Joined cases C-397/98 and C-410/98)
·       Athinaïki Zythopoiïa (Case C-294/99)
·       Lankhorst-Hohorst GmbH v Finanzamt Steinfurt (Case C-324/00)
·       Bosal Holding (Case C-168/01)
·       Océ van der Grinten (Case C-58/01) 

- Merger Directive

Taxation of restructuring operations in the European Union

On 17 October 2003 the Commission adopted a proposal (COM(2003) 613) amending Council Directive 90/434/EEC on a common system of taxation applicable to mergers, divisions, transfer of assets and exchanges of shares concerning companies of different Member State (see press release IP/03/1418).
A modified version of that proposal was subsequently adopted by Council on 17 February 2005 , as Directive 2005/19/EC (see press release IP/05/193 and Official Journal L 58, p. 19 of 4 March 2005 ). See also the press release issued at the time of political agreement on the modified version (IP/04/1446).
The Merger Directive 90/434/EEC of 23 July 1990 provides for the deferred taxation of capital gains arising from cross-frontier company restructuring carried out in the form of mergers, divisions, transfers of assets or exchanges of shares. Taxation of the capital gain is deferred until a later disposal of the assets.

Directive 2005/19/EC

The main amendments introduced by Directive 2005/19/EC are the following:

·       The Merger Directive currently applies to companies adopting one of the legal forms mentioned in a list annexed to it. Directive 2005/ /EC adds new legal entities to this list. The benefits of the Merger Directive are thus extended to a greater number of legal entities, including the European Company (Council Regulation (EC) 2157/2001 and Council Directive 2001/86/EC) which may be created as of October 2004 (see press release IP/01/1376) and the European Co-operative Society (Council Regulation (EC) 1435/2003 and Council Directive 2003/72/EC) which may be created from 2006 (see press release IP/03/1071).
·       The current list of companies covered by the Merger Directive contains entities that are subject to corporate tax in their Member States of residence. However, in the case of some of the new entities that have been added to the list other Member States simultaneously tax their resident taxpayers which have an interest in those entities, so-called 'transparent entities'. The same tax situation can also apply to the shareholders of companies entering into the transactions covered by the Directive. Directive 2005/19/EC introduces specific provisions (new Articles 4(2) and 8(3)) to ensure that the benefits of the Merger Directive are available even in these cases, subject to certain exceptions which are set out in the new Article 10a.
·       The coverage of a new type of transactions: a special division known as a "split off " (new Article 2(b)(a)). This transaction is a partial division. The splitting company is not dissolved and continues to exist. It transfers part of its assets and liabilities, constituting one or more branches of activity, to another company. In exchange, the receiving company issues securities representing its capital. These securities are transferred to the shareholders of the transferring company.
·       Directive 2005/19/EC provides for capital gains exemption when the receiving company holds shares in the transferring company. The holding threshold required to enjoy this exemption is now set consistently with that of the Parent-Subsidiary Directive. This threshold will be lowered in stages from 25% to 10% (Article 7(2)), in line with the amendments to the Parent-Subsidiary Directive introduced by Council Directive 2003/123/EC.
·       Directive 2005/19/EC introduces specific provisions providing relief on the conversion of branches into subsidiaries (Article 10).
·       The Directive introduces rules governing the transfer of the registered office of the European Company (SE). The title of the Merger Directive is modified to include a reference to this operation (Article 1) and the latter is defined in the text of the Directive (Article 2(j)).
The applicable tax regime is found under a new Title IVb, Articles 10b to 10d: the SE transferring its registered office will enjoy tax deferral on capital gains where its assets remain connected with a permanent establishment situated in the Member State from which it is moving. The shareholders of the SE should not be liable to tax on this occasion.

-Taxation of cross-border interest and royalty payments in the European Union

On 3 June 2003 the Council adopted Directive 2003/49/EC on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States (the "I+R" Directive) based on a proposal from the Commission (COM(1998) 67 final of 04/03/1998). See press release IP/03/787.

The I+R Directive is designed to eliminate withholding tax obstacles in the area of cross-border interest and royalty payments within a group of companies by:

·       abolishing withholding taxes on royalty payments arising in a Member State, and
·       abolishing withholding taxes on interest payments arising in a Member State.

These interest and royalty payments shall be exempt from any taxes in that State provided that the beneficial owner of the payment is a company or permanent establishment in another Member State .

- Companies that are covered by the Interest and Royalties Directive

As under the Merger and the Parent-Subsidiary Directives, the benefits of the I+R Directive are only granted to companies which are

·       subject to corporate tax in the EU,
·       tax resident in an EU Member State and
·       of a type listed in the annex to the Directive.

As the annex to the Directive only includes the types of companies existing in the 15 Member States that were already members of the EU before 1 May 2004, the types of companies in the new Member States have now been added by Council Directive 2004/66/EC of 26 April 2004 (Official Journal L 168, p.35, 67). In addition, the Council, on 29 April, adopted Directive 2004/76/EC (Official Journal L 157, p. 106) on the basis of the Commission's proposal of 1 April 2004 (see COM(2004) 243 final), granting some of the new Member States transitional periods resulting in their not applying the provisions of the Directive immediately from the date of their accession.

Furthermore, the Commission proposed an amendment to Directive 2003/49/EC on 30 December 2003 (COM(2003) 841 final
- see also press release at IP/04/105 ) to provide for an update of the list of companies in the annex to the Directive.
The proposed new list would also include:

·       the European Company (Council Regulation (EC) 2157/2000 and Council Directive 2001/86/EC) which may be created from 2004 (see press release IP/01/1376), and
·       the European Co-operative Society (Council Regulation (EC) 1435/2003 and Council Directive 2003/72/EC) which may be created from 2006 (see press release IP/03/1071)
 
Transitional periods for new Member States

Council Directive 2004/76/EC of 29 April 2004 allows certain new Member States (see following table) the possibility of transitional periods as regards the application of the provisions of the I+R Directive. The Directive is based on the proposal of the Commission of 1 April 2004 (COM(2004) 243 final). 

These transitional periods take effect from the date of application of the "Savings Tax Directive" (1 July 2005 ¿ to be confirmed). Hence, the I+R Directive also is not applicable in these Member States from the period between the date of Accession of 1 May 2004 and the aforementioned date. The new Member States were thus granted equivalent rules for their transitional periods as were granted to Greece, Spain and Portugal.

- Proposed amendment to the Interest and Royalty Directive

In the above-mentioned Commission proposal of 30 December 2003 a change to the scope of the Directive has been envisaged. This change will make it clear that Member States have to grant the benefits of the Directive to relevant companies of a Member State only when the interest or royalty payment concerned is not exempt from corporate taxation. In particular this addresses the situation of a company which, while subjected to corporate tax, also benefits from a special national tax scheme exempting foreign interest or royalty payments received. The source State would not be obliged to exempt from withholding tax under the Directive in such cases.

- Double taxation Conventions

As part of its general strategy of addressing the cross-border tax problems facing individuals and business operating within the Internal Market, the Commission is currently considering closely the possible conflicts between the EC Treaty and the bilateral double taxation treaties that Member States have concluded with each other and with third countries.
In relation to company taxation the Commission is in the process of assessing the various options for tackling the problems set out in the Commission's 2001 study on company taxation. Issues include the question of equal treatment of EU residents and the application of bilateral treaties in situations where more than two countries are involved (triangular situations).
In June 2005 the Commission presented in a working document (document ; annex A ; annex B ) a general legal analysis of problems regarding tax treaties, especially the consequences of certain rulings of the Court of Justice (ECJ) in this area together with possible solutions such as the creation of an EU version of the OECD Model Convention on which Member States' bilateral tax treaties are based or a multilateral EU tax treaty.

These issues were discussed with Member States in a workshop that took place in Brussels in July 2005. Several experts in this matter contributed to the workshop.

The double-taxation agreements of Member States will continue to be subject to review by the ECJ. In particular, the problems resulting from the current lack of co-ordination in this area, notably in triangular situations and with regard to third countries, will increase even further. Without Community action, there may be important political and economic repercussions for Member States' policies in this area. Therefore, the Commission hopes that its approach of gradual and measured co-ordination of treaty policies will eventually gain support and meet with a constructive attitude from Member States.

Discussions among Member States on this subject will be resumed in 2006 in the framework of a working group. The Commission intends to present a communication in 2006 explaining its short and long term strategy.

* Workshop on 'EC Law and Tax Treaties'

(Reproduction or use of textual or other information contained on this page is not permitted without the express consent of the relevant speaker)
Brussels, 5 th July 2005

Welcome and introduction

Mr. Aujean, Mr. Mors and Mr. Roccatagliata from the European Commission opened the floor and introduced the documents and the objectives of the workshop.
Working Document "EC Law and Tax Treaties "
Annex A
Annex B
EU Presentation
In order to animate the debates that took place after each panel and to receive input for future work, the working document raises questions regarding views on possible conflicts and their possible avoidance.

1st PANEL (Tax Treaties between Member States)

Chaired by:	Prof. Frans Vanistendael , KU Leuven University
Other speakers:	Prof. Marjaana Helminen , University of Helsinki [Tax Treaties between Member States ] Mr. Paul Farmer, Pump Court Tax Chambers, London Mr. Arnaud de Graaf , Ministry of Finance, The Netherlands [Presentation and Slides Impact EC Law on Tax Treaties between Member States]

The first panel examined possible conflicts between EC Law and tax treaties concluded among Member States. Such problems may result from court decisions of the European court of Justice that repeatedly said, despite the absence of harmonising measures and although "direct taxation does not as such fall within the purview of the Community, the powers retained by the Member States must nevertheless be exercised consistently with Community law". In this respect, some of the recent judgements of the Court have highlighted cases of discrimination in the treatment of Community citizens and businesses or of violation of the fundamental freedoms rules. Moreover, t he EC Study on Company Taxation identified a number of issues not covered within the scope of existing tax treaties. Primarily, these are issues for intra-Member States treaties. These issues include, for example, triangular situations, deduction of pension contributions, treatment of stock options, the relationship with anti-deferral and anti-abuse provisions, cross-border loss compensation. Finally, some pending ECJ cases inspired the debate.

2 nd PANEL (Tax Treaties between Member States and Third Countries)

Chaired by:	Prof. Klaus Vogel , Ludwig-Maximilian University , Munich
Other speakers:	Prof. Hugh J. Ault , Boston College Prof. Daniel Gutmann , University of Paris (I-Panthéon) [Tax Treaties between Member States and third Countries , Intervention by D. Gutmann] Mestre Ana Paula Dourado , Ministry of Finance, Portugal [Tax treaties between Member States and Third Countries ]

The second panel debated problems with EC Law related to tax treaties signed by individual Member States with third countries. The Commission suggested to examine this issue of tax treaties between individual Member States and third countries as a separate topic because of its peculiarity nature. Certainly - as already underlined in the Study on Company Taxation - it is true that anti-abuse clauses in tax treaties concluded by Member States with third countries should not discriminate against taxpayers in other Member States and that "limitation-on-benefits" clauses concluded by some Member States with the United States should be examined in the light of EC Law.

OECD Presentation

Mr. Mike Waters, Chair of WP1 (OECD-CFA); Ministry of Finance , United Kingdom
The European Commission offered the opportunity to the OECD, Centre of Tax Policy and Administration, to present to the tax experts and Member States representatives in charge of EC law, the work of groups and sub-groups of the Committee of Fiscal Affairs on tax treaties.
OECD-CFA website

FINAL PANEL (Possible Solutions)

Chaired by:	Prof. Peter Wattel , General-Advocate, High Court, The Hague
Other speakers:	Prof. Michael Lang , University of Vienna [EC Law and tax treaties: possible solutions ] Prof. Pasquale Pistone , University of Salerno [Workshop on Tax Treaties and European Law European Commission, Brussels 5.7.2005 slides and text ] Ms. Helen Pahapill , Ministry of Finance , Estonia

The concluding panel discussed possible solutions and the role that the European Commission could play in this context. Some experts also suggested opposite solutions (e.g. a multilateral tax treaty versus an EC tax model). Nevertheless, the debate was not limited to this main hypothesis. The existing tax treaties seem to need - at the very least - to be amended to conform to the developing rules of EC tax law as elaborated by the ECJ jurisprudence, by legislation and by soft-law in this area.

Contributions by participants:

- Prof. Daniel Deák, Corvinus University Budapest
[Consumption-oriented company taxation: a central European perspective ]

- Prof. Albert Rädler, Universität Hamburg
[Contribution to the workshop ]
 
- Conferences and other events
 
The European Commission has held two conferences on company taxation.
 
EU Corporate Tax Reform: Progress and New Challenges
 
Progress and New Challenges: European Conference on Company Taxation, Rome 5-6 December 2003.
 
Towards an Internal Market without corporate tax obstacles
 
"Towards an Internal Market without tax obstacles - A strategy for providing companies with a consolidated corporate tax base for their EU-wide activities" - Brussels, 29 and 30 April 2002
 
Other Events
 
This page provides links to seminars, conferences, papers etc. which are not organised or provided for by the Commission.
 
Organisations are invited to notify the Commission about their event at the following e-mail address: taxud-company-taxation@cec.eu.int
 
The Commission will put a link on this page if they feel the event is suitable for inclusion.