Half of multinationals 'not preparing' for CCCTB

News Article - 12 December 2007
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Despite the majority believing that a Common Consolidated Corporate Tax Base (CCCTB) will come into place soon, 49 per cent of multinational companies have not considered how it will affect their business, it has been found.

A poll by PricewaterhouseCoopers (PwC) revealed 67 per cent of UK multinationals think that CCCTB will arrive in the near future.

Peter Cussons, tax partner at the firm, said that companies which do not plan for CCCTB do so "at their peril" as it is likely to come into operation very soon.

"For any company with European subsidiaries the right course of action now is to consider … whether they want to opt in or not, based on how the proposed changes affect their business operations," he continued.

Research by PwC last year found that 35 per cent of tax directors from European based multinationals thought that CCCTB would be good for business. Four in ten believed it would increase their effective tax rate (ETR).

However this year found that 24 per cent thought it would increase ETR but 21 per cent said it would actually reduce it.

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