Plans to overhaul the taxation of company profits in the European Union have received a mixed response from across the profession.
The proposed system, the Common Consolidated Corporate Tax Base (CCCTB), will introduce a common definition of taxable profit across Europe.
On one side there is concern that the new measures involve a loss of national sovereignty over tax policy, but on the flipside it could be the only way to effectively tackle cross-border tax avoidance.
While there are flaws in the model for the CCCTB that is being proposed, a number of key tax voices have rallied “progressives” to support the proposals.
Richard Murphy, director of Tax Research UK, said: “A CCCTB makes complete sense - and is wholly supported by country-by-country reporting.