The objective of this study is to analyze the Draft Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) as of March 16, 2011 and examine how the proposed CC(C)TB will influence the tax burden of European corporations. In doing so, the first relevant question is whether and to which extend the corporate tax base will be affected if the current national tax codes are replaced by the proposed set of harmonized tax regulations. In order to answer this question, we analyze and compare all regulations by the proposed Council Directive with respect to the determination of corporate taxable income under a CC(C)TB with the tax accounting rules prevailing in each of the 27 EU-Member States, Switzerland and the USA. To avoid uncertainties in the interpretation of the national tax codes, we collect the necessary tax data in collaboration with Ernst & Young (EY) accountants and tax lawyers in all 29 considered countries.
In a second step we take the results of the comprehensive international comparison and numerically assess the impact of the proposed CC(C)TB on the corporate tax burden in Europe. Based on the methodological approach of the "European Tax Analyzer", we calculate and compare effective tax burdens under both the national tax regulations and the proposed CC(C)TB in different economic settings.