In its recent Communication on Business Taxation for the 21st Century, the European Commission announced a legislative proposal to address the debt-equity bias in corporate taxation through an allowance system.
The JRC has provided extensive analysis on the debt bias in the context of the Impact Assessment of the CCCTB using the CORTAX model and will build on this expertise to assess and help shape the forthcoming Commission proposal creating a Debt Equity Bias Reduction Allowance (DEBRA).