Invest Europe-PAE

Response to Commission consultation on the Common Consolidated Corporate Tax Base (CCCTB)

Positions & consultation responses

08 Jan 2016

We responded to the consultation on the re-launch of the Common Consolidated Corporate Tax Base (CCCTB) focusing on the question of the apparent “debt equity bias”. In this paper, we explain that debt and equity are complementary rather than antagonistic and outline why any moves to limit interest deductibility would increase the cost of financing for businesses. We therefore encourage the maintenance of current rules in this area.