modelling many key features of corporate tax regimes, including multinational profit shifting, investment decisions, loss … capital, which on average falls across the EU, boosting investment, and therefore driving the increase in GDP. Second, C … harmonised tax base, because it more directly impacts the marginal investment decision. Reducing profit shifting slightly lowers …

and only if the investment elasticity of the tax base is lower than the investment elasticity of the apportionment factor …