Insurance EuropeInsurance Europe
News
Concerns raised on European Commission CCCTB proposal

Insurance Europe has published a position paper on the European Commission’s proposals for a Common Corporate Tax Base (CCTB) and consolidation.

While Insurance Europe supports the Commission’s aim to simplify the determination of taxable income for cross-border companies, it believes that certain aspects of the Commission’s proposals must be refined to ensure added value for European businesses.

Similarly, although Insurance Europe supports any measures designed to counter aggressive tax planning and avoidance, it believes that a CCTB would not adequately meet these objectives as set out in the proposal.

Insurance Europe also emphasised that it is only through consolidation that the expected advantages of the CCTB, in terms of reinforcing the European Single Market, can truly be achieved. This is because consolidation recognises a company’s cross-border activity within the EU and, without consolidation, there would be no benefits for taxpayers to justify the introduction of a new tax system.

Consolidation is especially important for insurance undertakings because, according to supervisory rules, the various insurance business activities often cannot be carried out in one entity but rather must be split into separate legal entities.

Published 21 February 2017
Related items