Next week, the European Commission will unveil a proposal aimed at decreasing corporate tax avoidance.
The so-called Common Corporate Tax Base (CCTB) draft regulation envisages an EU-wide mandatory tax base for companies with total revenue in excess of €750 million, Reuters reports.
When a company exceeds this revenue ceiling all its income, across EU member states, will be consolidated into a single bill. Therefore, multinational corporations will have to pay taxes for EU-wide revenues.
Currently, companies make use of sophisticated accounting techniques to reduce their final tax bill by taking advantage of the variation between 28 national taxation system regimes.
The question is whether the European Commission can master a consensus of corporate taxation; a similar plan was shelved due to member state opposition in 2011.