The Lisbon Treaty and the CCTB (Common Corporate Tax Base): The Debate

Abstract

The fact that direct taxation in the EU is still not integrated, and maybe will never be fully integrated, is one of the major obstacles for the 'single market'. The essay describes the history of attempts (and failures) to harmonize direct taxation in the EU - fully or partly. It concentrate on the enhancement of a common corporate tax base, by one of two optional techniques: the attempt to achieve qualified majority vote on direct tax matters in the rejected EU constitution, and the threat to use the Enhanced cooperation procedure, which is already embodied in the EC Treaty but is improved by the Lisbon Treaty, recently rejected by the Irish referendum. The essay analyzes the chances of such a move as well as the possible implications thereof.