Common Consolidated Corporate Tax Base (Ccctb) In the Theory of Corporate Finance

Abstract

Common Consolidated Corporate Tax Base (Ccctb) In the Theory of Corporate Finance Jolanta Iwin-Garzyńska Abstract One of the main objectives to be accomplished by the European Union law is to eliminate barriers to the functioning of domestic market and in particular improve the competitiveness of enterprises. After several years of efforts, on 16 March 2011 the European Commission approved a proposal for the directive on a Common Consolidated Corporate Tax Base which is to remove obstacles to the functioning of internal market and increase tax harmonization in the EU. The article is aimed at presenting the essence of CCCTB in the theory of corporate finance and its importance for enterprises, based on the survey of Polish and EU companies. The paper addresses issues relating to tax in corporate finance. Canons of taxation will be discussed and special emphasis will be placed on principles behind formulating fiscal law provisions (including the EU law). Furthermore, the article presents the results of surveys into the importance of taxation cannons for Polish and EU companies. Attention will also be paid to taxable income and deductible expenses with special reference to non-taxable income and non-deductible expenses. The proposal for the directive on CCCTB will be compared with fundamental theories of corporate finance – such as the theory of capital structure Full Text: PDF DOI: 10.15640/ijat.v4n1a2