New consolidated tax base, the text passes to the Government

The Government and the European Commission receive precise indications from the Finance Committee of the Chamber on the hypothesis of a common consolidated tax base for corporate tax. In fact, the commission approved the final document on the proposal for a Community directive which provides for an optional common regime for companies that are fiscally resident in the European Union.
In general, this common regime provides for rules for calculating the tax results of each company (or branch), consolidating those results when there are other members of the group and allocating the consolidated tax base between each Member State. Currently - the European Commission had pointed out - the interaction between the different national tax systems often leads to overtaxation and double taxation, as well as to onerous administrative and regulatory burdens for businesses. Hence the need for new legislation to resolve these regulatory conflicts.
Indeed, the immediate consolidation of profits and losses for the purpose of calculating tax bases at EU level would indeed allow to reduce the overtaxation in cross-border situations and ensure greater tax neutrality between purely domestic activities and foreign activities, so as to better exploit the potential of the market internal.
Here then are the addresses that have been formulated in the document developed by the Montecitorio Finance Commission.
In summary, the Government is invited to make the application of the consolidated tax base mandatory, rather than optional, in order to ensure greater convergence of national tax systems, not subjecting it to a mere calculation of convenience by the companies concerned. The document calls for the establishment of common rules for the general application of the taxable base of the tax to all joint-stock companies and consequently for the establishment of one or more minimum tax rates, on the model of VAT and excise duties. Furthermore, the margins of discretion of individual states will have to be reduced. Finally, the Chamber will have to estimate the impact of the proposed directive on tax revenues and evaluate the introduction of similar simplifications for the preparation of the statutory financial statements and the determination of the tax base for IRAP purposes, in favor of companies adhering to the optional regime.