Taxing corporations in the European Single Market - the reform proposals of the European Commission

The above-mentioned study of the European Commission (of 23 October 2001) presents a strategy by which cross-border enterprise activity is to function more efficiently and more smoothly. This strategy is based on the creation of a consolidated corporate tax assessment for multinational enterprises, in which the member states determine their share of the tax base by using an allocation key and then tax this share on the basis of the tax rates that prevail in the individual member states. The Ifo Institute briefly presents the reform proposals of the European Commission and discusses remaining problems and open questions.