The Two days on “CCCTB” from the words of Dr Panayi
The MIM Malta Institute of Management held the “The Common Consolidated Corporate Tax Base and other Recent Developments” (CCCTB), a two days seminar at the Malta Financial Services Authority, delivered by Dr Christiana HJI Panayi, senior lecturer in Tax Law at Queen Mary, University of London and the Deputy Director of the School of Tax (learn more about Dr Panayi).
The 1st part was held the last thuesday, 15th May 2012, and has been accredited with 2 hours of structured CPE qualifying for the aMainment of Core Competencies in terms of the MIA CPE Regulations. The 2nd part was held today and has been accredited with 2.5 hours of structured.
Dr Panayi examined some interesting topics related to the CCCTB for EU group companies, as “The History of the proposal“, the “Basic principles, eligibility and group membership rules, the new common tax base“, the “Consolidation, formulary apportionment, administration of the system” on thuesady.
Today she analized the “International aspects – Taxation of outbound and inbound investment“, the “Anti-abuse rules – the GAAR, CFC and Thin Cap rules” and other recent developments.
«As far as the CCCTB is concerned, Malta will likely be affected whether it adopts the new proposal or not» - explained Dr Christiana Panayi - «If it adopts it, then it will have to provide an additional tax base. The CCCTB has rules for the calculation of the new tax base, depreciation, loss relief, intra-group transfers, reorganisations, the administration of the new system, taxation of inbound and outbound investment, anti-abuse rules and formulary apportionment. To the extent that these rules are different from the Maltese tax rules, they will encourage companies to opt for that system rather than the national one. One big difference is that intangibles are not to be taken into account in formulary apportionment which comprises of assets, labour and sales by destination. Therefore, when a Maltese company holding intangibles is part of a CCCTB group, then after the tax accounts are consolidated and the formula applied, it is unlikely to be apportionment part of the tax base. This may lead to loss of tax revenue».
«If Malta decides not to adopt the CCCTB and the proposal proceeds on the basis of enhanced cooperation under EU law, then it will be under a duty not to impede its implementation» - concluded the senior lecturer in Tax Law - «It is currently uncertain what this means. It may affect Malta’s rights to tax inbound and outbound investment into the CCCTB area».
These and a number of other issues were addressed by Dr Christiana HJI Panayi at the conference.
Whatch the comment by Dr Christiana Panayi on the seminar: