The Tax Treatment of Losses under the Proposed Common Consolidated Corporate Tax Base Directive - Intertax View The Tax Treatment of Losses under the Proposed Common Consolidated Corporate Tax Base Directive by - Intertax The Tax Treatment of Losses under the Proposed Common Consolidated Corporate Tax Base Directive 41 11

On 16 March 2011 the European Commission published its proposal for a Common Consolidated Corporate Tax Base directive (CCCTB). The CCCTB is a set of rules by which groups of companies that are tax resident in the European Union (EU) or EU-located branches of third-country companies would be able to submit a single consolidated European corporate tax return. This implies that the group operating within the EU would be able to offset the losses of group members against the profits of other group members in order to arrive at the consolidated tax base, even when the group members are residents of different EU Member States. This paper will discuss how losses are treated under the proposed CCCTB directive. The first section will deal with losses on entering the CCCTB regime; the second section will address losses during the CCCTB regime while the third section will deal with losses after exiting the CCCTB regime. In the final section the paper will be concluded with a conclusion.

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