Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Topics:
Corporate tax in the European Union; Tax harmonisation, tax competition; European Competition Commission; Foreign direct investment (FDI); Structural funds; Labour productivity; Unemployment; Fiscal dumping; Single market; GDP (gross domestic product) growth; Gerhard Schroeder; Turnaround by tax policy; Ireland; Growth and stability pact; Fiscal deficits
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https://casecent.re/p/19605
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Abstract
The European Union (EU) was the largest single market in the world. The idea of harmonising the corporate tax rate, to further the goal of a single market that provides similar conditions to companies across national borders, has been floated in the EU for sometime now but has not been acceptable to all the countries. As investment conditions within the EU become more homogenous, individual countries like Ireland have used tax competition as a means of differentiating themselves and attracting foreign investment. The expansion of the EU on 1 May 2004 has brought the issue back into the limelight. High tax member states like Germany have strongly argued for tax harmonisation and a minimum corporate tax rate, while low tax member states like Ireland and the new EU members have opposed any such proposal. The case describes the conflict of interest within the EU on the issue of corporate tax. It helps to discuss the merits and demerits of tax harmonisation and tax competition.
Location:
Other setting(s):
2004
About
Abstract
The European Union (EU) was the largest single market in the world. The idea of harmonising the corporate tax rate, to further the goal of a single market that provides similar conditions to companies across national borders, has been floated in the EU for sometime now but has not been acceptable to all the countries. As investment conditions within the EU become more homogenous, individual countries like Ireland have used tax competition as a means of differentiating themselves and attracting foreign investment. The expansion of the EU on 1 May 2004 has brought the issue back into the limelight. High tax member states like Germany have strongly argued for tax harmonisation and a minimum corporate tax rate, while low tax member states like Ireland and the new EU members have opposed any such proposal. The case describes the conflict of interest within the EU on the issue of corporate tax. It helps to discuss the merits and demerits of tax harmonisation and tax competition.
Settings
Location:
Other setting(s):
2004