Tax in Troubled Time : Is it the Time for a Common Corporate Tax Base in the EU?

The essay introduces the main dilemmas faced by decision makers in the European Union (EU) regarding the initiation of a Common Corporate Tax Base (CCTB) in the EU. It introduces the policy considerations and conflict of interests among EU Members, which prevented the initiation of a CCTB in the EU by now; the possible variations of CCTB, including their advantages and disadvantages; and the possibility of effectuating the enhanced cooperation procedure to initiate a CCTB among part of EU Members. The essay then analyses the possible implications of such a step on the participating and non-participating EU Members, on the EU as a whole, and on third countries. To that extent, the essay attempts to draw a lesson from other ‘Europe in two speed' practices: the Economic and Monetary Union (EMU), the Schengen agreements, and the security policy. The main findings are that a CCTB will not necessarily provide only for benefits of the Members involved in it and that the formula adopted for such an arrangement may be decisive to its short-term and long-term consequences. It should therefore be carefully weighed