A comprehensive solution for a targeted problem : a critique of the European Union's home state taxation initiative

This article examines the Commission's home state taxation and CCCTB initiatives. It argues that both proposals undermine the long-term objective of a consolidated EU corporate tax regime. It suggests an alternative strategy, a comprehensive formulary tax allocation solution in one of the hard-to-tax sectors, such as the financial sector. This strategy requires more effort and political risk taking, but would better promote the long-term objective of a consolidated EU corporate tax regime.