Common Consolidated Corporate Tax Base and ISSB S1: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Update for change of French president.)
 
(Create page. Sources: Linked pages.)
 
Line 1: Line 1:
''EU''.
''Financial reporting - sustainability - International Sustainability Disclosure Standards - International Financial Reporting Standards (IFRS).''


The Common Consolidated Corporate Tax Base (CCCTB) is a [[European Commission]] proposal (March 2011).
ISSB S1 is an alternative name for IFRS S1, dealing with General Requirements for Disclosure of Sustainability-related Financial Information.


CCCTB would be a single set of harmonised rules for calculating taxable profits, to replace the current different, national corporate tax rules in each EU Member State. Companies or qualifying groups of companies operating within the EU would use the proposed rules to calculate their taxable profits and losses, and file a single consolidated tax return for the whole of their EU activity. The calculated taxable profits would be shared among Member States on a formula, perhaps related in certain proportions to turnover, wage bill, number of employees, physical capital and such. Each Member State would then collect tax at its own national rate on its portion of the total profits.


A purpose of the common tax base would be to make tax competition among Member States more transparent.
== See also ==
* [[IFRS S1]]
* [[IFRS S2]]
* [[IFRS Sustainability Disclosure Standards]]
* [[IFRS Sustainability Disclosure Taxonomy]]
* [[International Accounting Standards]]  (IAS)
* [[International Accounting Standards Board]]  (IASB)
* [[International Financial Reporting Interpretations Committee]]
* [[International Financial Reporting Standards]]  (IFRS)
* [[International Financial Reporting Standards Foundation]]
* [[International GAAP]]
* [[International Sustainability Standards Board]]  (ISSB)
* [[Sustainability]]




''Critics'' of harmonisation see base differences as socially useful competition among Member States, allowing States differently to influence behaviour of companies as well as influencing tax revenues. Such critics also tend to value competition on tax rates. The critics view both these factors as encouraging governments to be more efficient.  
==External links==
*[https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s1-general-requirements/#about About IFRS S1 - IFRS]
*[https://www.iasplus.com/en-gb/standards/ifrs-sds/ifrs-s1-general-requirements-for-disclosure-of-sustainability-related-financial-information IFRS S1 - IAS Plus]


''Supporters'' of harmonisation see base differences (and often rate differences too) as distortions, encouraging damaging corporate tax arbitrage between competing jurisdictions.
[[Category:Accounting,_tax_and_regulation]]
 
 
====Progress====
Agreement on tax base harmonisation has been a slow process.
 
Supporters of harmonisation continue to argue the case, especially before their domestic electorates. Supporters of harmonisation have also proposed the introduction of a common tax base among a voluntary coalition of willing Member States ([http://europa.eu/legislation_summaries/glossary/enhanced_cooperation_en.htm enhanced co-operation]) if agreement among all Member States is not forthcoming.
 
For example, then French President François Hollande [http://www.lepoint.fr/economie/hollande-fait-le-voeu-pieux-d-une-harmonisation-fiscale-europeenne-21-01-2014-1782831_28.php] said in 2014 that he wanted "[tax base] harmonisation with our largest neighbours" by 2020.
 
 
The Commission presented a strategy to re-launch the CCCTB and public consultation was undertaken in 2015.
 
The aim of the re-launch was to kick-start negotiations on the CCCTB in Council, which had stalled largely due to the scale of the proposal.
 
The Commission came forward with a new proposal to revive the CCCTB, based on two key changes:
 
#A mandatory CCCTB - to improve its capacity to prevent profit shifting.
#The CCCTB to be introduced through a step-by-step approach - to make it more manageable for Member States to agree.
 
 
Consultations on these proposals continue.
 
 
==See also==
 
* [[Base erosion and profit shifting]]
* [[CbC reporting]]
* [[Corporation Tax]]
* [[Tax base]]
 
 
====Other links====
*[http://ec.europa.eu/taxation_customs/taxation/company_tax/common_tax_base/index_en.htm The Common Tax Base, European Commission]
*[[Media:2015_10_Oct_-_Walk_the_line.pdf| Walk the line, The Treasurer, 2015]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 22:36, 4 December 2023

Financial reporting - sustainability - International Sustainability Disclosure Standards - International Financial Reporting Standards (IFRS).

ISSB S1 is an alternative name for IFRS S1, dealing with General Requirements for Disclosure of Sustainability-related Financial Information.


See also


External links

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Common_Consolidated_Corporate_Tax_Base&oldid=53889’