Blueprint for a New Common Corporate Tax Base

In response to the shortcomings of the corporate tax systems of the Western world, the OECD has initiated its Base Erosion and Profit Shifting initiative. Similarly, actions have been endorsed by the European Commission in its fight against aggressive tax planning. The author, in this article, takes a different approach to the issue by examining alternative concepts of a harmonized tax base with respect to routine profits and centralized taxation of residual profits within the European Union.