Bringing transparency, coordinationand convergence to corporate tax policies in the European Union

Abstract

This paper assesses the loss of tax revenue to the EU through aggressive corporate tax planning to be around 50-70 billion euro per annum. On an assumption of no base from sources other than profit shifting, then this figure jumps to 160-190 billion euro. The paper presents the methodology used and the country-by-country calculations on which these figures are based. It describes the common tools used in aggressive planning, and the impacts these have on tax revenue, concluding with an assessment of the inefficiencies created by individual tax arrangements for large multinational companies in the European Union.