Home >
Taxation >
Europe >
European Union Corporate Tax Law

European Union Corporate Tax Law

Author: Christiana HJI Panayi
Publisher: Cambridge University Press
ISBN: 9781107018990
Published In: May 2013
Format: Hardback , 408 pages
Jurisdiction: European Union ? Disclaimer:
Countri(es) stated herein are used as reference only

New Edition is available now !

Description
Contents
Author

Details

How does EU law affect Member State corporate tax systems and the cross-border activities of companies? This unique study traces the historical development of EU corporate tax law and provides an in-depth analysis of a number of issues affecting companies, groups of companies and permanent establishments. Existing legislation, soft-law and the case-law of the Court of Justice are examined. The proposed CCCTB Directive and its potential application through enhanced co-operation are also considered. In addition to the tax issues pertaining to direct investment, the author examines the taxation of passive investment income, corporate reorganisations, exit taxes and the restrictive effect of domestic anti-abuse regimes. By doing so, the convergences and divergences arising from the interplay of EU corporate tax law and international tax law, especially the OECD model, are uncovered and highlighted.

• Assessment of the impact of EU law on companies, groups of companies and corporate investors will assist students, lawyers, government officials and academics to understand the current situation

• Examines the interaction between EU corporate tax law and both international tax law and the OECD model, making this useful for readers from non-EU countries and those working in international tax law

• Analyses recent cases and legislative proposals and offers a thought-provoking discussion of the current problems faced by companies in their cross-border activities

Foreword – Malcolm Gammie QC	xi
Foreword – Professor Michael Lang	xv
Preface	xvii
Introduction	1
1 The historical background to EU corporate tax law	3
1.1 Introduction	3
1.2 The historical background	9
1.2.1 The Neumark Report	9
1.2.2 The Segrè Report	11
1.2.3 The Program for the Harmonisation of Direct Taxation	13
1.2.4 The Van den Tempel Report	13
1.2.5 The Commission’s 1975 proposal and its aftermath	14
1.2.6 The Ruding Report	18
1.3 Recent developments	21
1.3.1 Harmful tax competition and the tax package	21
1.3.2 The 2001 Company Tax Study	22
1.3.3 The aftermath to the 2001 Company Tax Study	25
1.3.4 Good governance in tax matters	27
1.4 The future of EU corporate tax law	29
2 EU corporate tax legislation	31
2.1 The Parent–Subsidiary Directive	31
2.1.1 Profit distribution	33
2.1.2 Eligibility requirements	36
2.1.3 Taxing the profit distribution	41
2.1.4 What is a withholding tax?	45
2.2 The Merger Directive	50
2.3 The Interest and Royalties Directive	51
2.3.1 Eligible companies, permanent establishments and beneficial ownership	53
2.3.2 Interest, royalties and excluded payments	57
2.3.3 The taxation of the payer/debtor	62
2.3.4 Reform of the Interest and Royalties Directive	64
2.4 The Savings Directive	65
2.5 The Arbitration Convention	70
2.6 The Code of Conduct on Business Taxation	75
2.7 The Mutual Assistance Directives	76
2.8 The Draft Directive for Cross-Border Loss Relief	78
3 The Common Consolidated Corporate Tax Base	81
3.1 Introduction – unanimity or enhanced cooperation?	81
3.2 Key features of the Draft CCCTB Directive	84
3.2.1 Eligibility and membership tests	84
3.2.2 Optionality: coexistence of domestic regimes and the CCCTB	88
3.2.3 The new tax base	90
3.2.4 Consolidation and other benefits	93
3.2.5 The administration of the CCCTB	98
3.3 Taxation of inbound and outbound payments	102
3.3.1 Inbound payments	102
3.3.2 Outbound payments	105
3.4 Anti-abuse rules	108
3.4.1 The GAAR	108
3.4.2 Controlled foreign companies	109
3.4.3 Thin capitalisation	112
3.5 Formulary apportionment	117
3.6 The future of the CCCTB	120
4 The Court of Justice and the development of EU corporate tax law	123
4.1 Tax litigation in the Court of Justice	123
4.2 Fundamental freedoms, state aid and direct taxation	129
4.2.1 Free movement of goods	129
4.2.2 Free movement of persons	129
4.2.3 Freedom to provide services	132
4.2.4 Free movement of capital	135
4.2.5 Citizenship rights	142
4.2.6 The state aid prohibition	144
4.3 Methodology of the Court of Justice	148
4.3.1 Finding the relevant freedom	148
4.3.2 Discrimination and restriction approach	151
4.3.3 Tax treaties and double taxation	157
4.3.4 Overall or per-country approach?	165
4.4 Conclusion	169
5 Tax obstacles to the cross-border movement of companies: direct investment	171
5.1 Company residence	171
5.2 Issues with the taxation of corporate groups	175
5.2.1 Expenses in foreign holdings	177
5.2.2 Cross-border loss relief	182
5.2.3 Controlled foreign companies	196
5.3 Issues with the taxation of permanent establishments	196
5.3.1 Defining permanent establishments	196
5.3.2 The different treatment of permanent establishments and companies	198
5.3.3 Rules for the attribution of profits and expenses	207
5.3.4 Notional payments and expenses	212
5.3.5 Cross-border loss relief	214
6 Tax obstacles to cross-border portfolio investment	229
6.1 Double taxation relief mechanisms	229
6.2 The taxation of inbound dividends	235
6.2.1 The early cases: individual shareholders	237
6.2.2 Later cases: corporate shareholders	238
6.2.3 Economic and juridical double taxation – the home state perspective	249
6.3 The taxation of outbound dividends	252
6.3.1 The early cases – Fokus Bank, ACT GLO, Denkavit and Amurta	252
6.3.2 Later cases – consolidation of the Court’s principles	257
6.3.3 The relevance of tax treaties – neutralisation of host state taxes?	264
6.3.4 Economic and juridical double taxation – the host state perspective?	268
6.3.5 Taxation on gross basis or net basis?	270
6.3.6 Other developments	273
6.4 The taxation of interest and royalties	275
7 Reorganisations under EU tax law	282
7.1 Corporate reorganisations and the Merger Directive	283
7.1.1 The scope of the Merger Directive	284
7.1.2 Reliefs under the Merger Directive	286
7.1.3 Case law on the Merger Directive	290
7.2 Corporate migration	299
7.2.1 Corporate law restrictions	299
7.2.2 The transfer of tax residence	306
7.2.2.1 Exit taxes	307
7.2.2.2 The case law of the Court of Justice: emigrating individuals v. emigrating companies?	310
7.2.3 The EU’s corporate vehicles	326
7.3 Transfer of assets	328
8 Tax avoidance and EU law	333
8.1 An EU principle of abuse of tax law?	333
8.2 Anti-deferral regimes	338
8.2.1 CFCs in international tax law	339
8.2.2 CFCs in EU tax law	342
8.3 Thin capitalisation	349
8.4 Transfer pricing	360
9 EU corporate tax law: interim conclusions and thoughts	365
Index	385