Introduction

Abstract

The aim of this report is to help evaluate the economic consequences of introducing a harmonized tax base for EU companies, as proposed by the European Commission. A harmonised tax base would help to eliminate the most important tax obstacles to EU-wide cross-border activities, including compliance costs, denial of group-wide consolidation of profits and losses, transfer pricing problems, double taxation caused by cross-border reorganisations and conflicting taxing rights. These obstacles are a product of the large discrepancies between the tax systems of each EU member state.