Proposals for a European Corporate Taxation and their Influence onMultinationals’ Tax Planning

The components of a European tax system with CCCTB or ETAS differ significantly. Nevertheless,we can perform a comparison in the chosen model framework. We determine theminimum required minimum pre-tax rate of return of a real investment in comparison to afinancial investment within a multinational group. We identify for specific scenarios underwhich conditions and tax concepts a real investment is tax favoured or tax discriminated. Furthermore,we show that both ETAS and CCCTB react sensitively to the variation of selectedparameters, but each in their own way.Our analyses demonstrate that the tax planning that is possible under the current tax systemwill be impaired under ETAS and under CCCTB.[...]