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CCCTB: the route to go to enhance cross-border trade and reduce compliance costs , but implementation and revenues consequences issues shall be carefully watched.


17 Mar 2011

- ACCA welcomes European Commissioner for taxation Algirdas Šemeta publication today of a proposal for a Directive on a Common Consolidated Corporate Tax Base (CCCTB). For the global accountancy body, the European Commission rightly proposed that member states should maintain the ability to set their own tax rates (thus maintaining some control over tax revenues), and make the CCCTB available to companies, which then could decide which tax regime to adopt -

Chas Roy-Chowdhury, head of Taxation at ACCA (the Association of Chartered Certified Accountants) says: "ACCA shares the Commission’s view that simplifying procedures, improving efficiency and reducing compliance costs in taxation matters are of essence to strengthen the Internal Market. A clear, simple and user-friendly CCCTB - providing that it remains voluntary for Member State to decide the approach that best fits its own national budgetary needs and tax policy mix - would help enhance the competitiveness of European businesses, - especially Small and Medium Enterprises (SMEs) - and attract investment."

Deeper coordination of national tax systems in Europe - and more specifically the lack of a true Single Market for direct taxes- has always been one of the most controversial topics in the history of the EU. This is especially true at a time of a more and more globalised world that witnesses EU-based companies increasingly operating across borders.

"Albeit recognising the need to be realistic regarding the existing resistance from several member states, ACCA believes that the CCCTB is a useful option to address the underlying tax obstacles -such as double taxation- which exist for companies operating in more than one Member State . The "one-stop-shop" system for filing their tax returns will help reducing administrative burdens .

Another step into this direction could be realised through the Commission 's proposal to create a European Private Company Statute, which is still stuck in the Council. ACCA is also a strong advocate of the interconnection of national business registers throughout the EU and therefore welcomed the European Commission’s proposal in this respect" Chas Roy-Chowdhury explains .

"The creation of common corporate tax single set rules would allow companies to use the same methodology for calculating their profits and losses throughout the EU as well as helping reducing discretionary practices and thus decrease compliance costs - especially for SMEs, for which these costs are disproportionately higher. We also support "one-stop shops" for VAT and "home state taxation" principles that would provide SMEs with the right incentives to go international and make the most out of the single market, as highlighted in the Single Market Act and in the spirit of the revised Small Business Act", he added.

For ACCA, the newly published proposal is certainly the route to go, but some implementation issues will need to be carefully watched, such as questions relating to the tax base determination (IFRS versus national GAAP debate). Effective implementation will also require enhanced cooperation between the various national tax authorities responsible for coordinating the appropriate checks and follow up on the return. In addition, in line with the move to smart regulation, it would be useful to ensure that the new IMI (Internal Market Information) system will be applicable to the exchange of information under the CCCTB Directive.

"We need to make sure that enterprises are taxed on the effective location of activities and to further clarify the interaction between the CCCTB and other aspects of direct taxation. Greater transparency is needed in order to ensure that competition takes place on the effective tax rate . In the current economic climate, it is also important for member states to carefully assess the possible effects of the introduction of an optional CCTB on government revenues", Chas Roy- Chowdhury concluded.

- ends -

For further information, please contact:

Cecile Bonino

+32 (0) 2 286 11 37 

Notes to Editors

   1. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

   2. We support our 140,000 members and 404,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,000 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.

   3. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.


Cecile Bonino
Public Affairs and Media Relations Officer-EU ACCA
CBI business house
14 rue de la Science
BE-1040 Brussels
tel:+32 (0) 2 286 11 37
mob: +44 (0) 7809595008



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