The European Commission favours the introduction of a consolidated corporate tax base to overcome the distortions … general equilibrium model CORTAX. We show that the benefits of a common consolidated tax base are limited due to two … MNEs new tax planning possibilities to exploit tax rate differentials in the European Union. In addition, it triggers tax …

This paper analyzes enhanced cooperation agreements in corporate taxation in a three country tax competition model … where countries differ in size. We characterize equilibrium tax rates and the optimal tax responses due to the formation of … an enhanced cooperation agreement. Conditions for strategic complementarity or strategic substitutability of tax rates …

European countries. The magnitude of these effects rise in particular in the broadness of the corporate tax base of a country …

In Europe, declining corporate tax rates have come along with rising tax-to-GDP ratios. This …