European Commission drafts EU-wide corporate tax laws

Last September, in an interview with The Guardian, Pierre Moscovici, European Commissioner for Economic and Financial Affairs, said that the common consolidated corporate tax base (CCTB) draft could be expected in late October or early November.

The EC expects that a common EU-wide tax regime, stipulating how businesses should report their profits and calculate their tax, could close the cross-border loopholes companies use to avoid paying their dues in full.

The idea of a CCTB was first proposed in 2011, but it failed largely because it was blocked by the UK and Ireland, among others.

The re-launched version differs from the previous one in that it will be mandatory, at least for multinationals. Moscovici said the Commission has strong assets which allow them to reintroduce the idea: the mood in the public and the scandals.