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Curbing Aggressive Tax Planning

In its recent Communication on Business Taxation for the 21st Century, the Commission has put forward proposals for fighting aggressive tax planning. The Commission committed to table a legislative proposal to address aggressive tax planning opportunities linked to the use of shell companies and to make a legislative proposal for the publication of effective tax rates paid by large companies.

The JRC supports the efforts to address aggressive tax planning behaviour and profit shifting to uncooperative and low-tax jurisdictions. Using the general equilibrium model CORTAX, the JRC has investigated a variety of policy reforms that ensure effective taxation of outbound passive payments, including interest and royalty payments.

JRC has also estimated tax revenue losses related to Base Erosion and Profit shifting (BEPS) and provided the first assessment of its macroeconomic effects, using the CORTAX model.

Check-out related research

How large is the corporate tax base erosion and profit shifting? A general equilibrium approach

The economic consequences of corporate tax rates reductions in the EU: Evidence using a computable general equilibrium model .

International taxation and multinational firm location decisions

Real Effects of Public Country-by-Country Reporting and the Firm Structure of European Banks

On the relevance of double tax treaties

Bilateral Tax Competition and Regional Spillovers in Tax Treaty Formation

Team

María T. Álvarez-Martínez

Maria Gesualdo

Andrzej Stasio

Raffael Speitmann