Acta Univ. Agric. Silvic. Mendelianae Brun. 2011, 59(7), 363-370 | DOI: 10.11118/actaun201159070363

CFC rules in the context of the proposed CCCTB directive

Veronika Sobotková
Ústav účetnictví a daní, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika

In the proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) there have been introduced a specific anti-abuse provisions, CFC rules. These rules are aimed at tax evasions and tax avoidance. The basic principle is the protection of the tax base against erosion through practices of artificial income shifting. Generally, CFC rules prevent tax avoidance in a state of a shareholder by denying the deferred taxation of profits generated by its controlled company, which is a resident in a tax preference jurisdiction. Even thought the CCCTB directive would be aided easier and low-costs cross-border business as well as it would be restricted the harmful tax competition there are questions whether it is advisable to introduce these rules into such system of the CCCTB, whether these rules are compatible with the CCCTB and whether it is regulated properly. So, the focus of this paper rests on the interaction of the proposed CCCTB directive with existing CFC rules in the European Union. The paper deals with pros and cons, economic and legal perspectives these rules in the context of the proposed CCCTB directive.

Keywords: anti-abuse provisions, anti-avoidance rules, CCCTB, CFC rules, tax evasions

Received: August 31, 2011; Published: January 26, 2014  Show citation

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Sobotková, V. (2011). CFC rules in the context of the proposed CCCTB directive. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 59(7), 363-370. doi: 10.11118/actaun201159070363
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    References

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