Group taxation in Europe (part 2)

Project directors

  • Prof. Dr. Andreas Oestreicher
  • Prof. Dr. Christoph Spengel


  • Dr. Christina Elschner

Participating research assistants

  • Dipl.-Kfm. Reinald Koch
  • Dipl.-Kfm. Timo Reister
  • Dipl.-Kffr. Katharina Finke


1.1.2009 - 31.12.2010

Funded by

  • German Research Foundation

Co-operating partner

  • Centre for European Economic Research (ZEW), Mannheim


The coexistence of the European tax systems distorts locational, investment and financing decisions and hinders the cross-border business activities of companies within the EU. The European Commission wishes to overcome these distortions and hindrances with the help of a consolidated corporate tax base. Among other things, the introduction of this taxation concept requires agreement upon a common tax base, a consolidation method and a formula for the distribution of the tax base to the member states concerned, whereas the concrete design is not fully resolved at present. The aim of this research project is to develop options of consolidated group taxation within the EU and to estimate the tax burden for corporations and the cross-national distribution of tax revenue. Therefore, methods of microsimulation are to be developed which can be used to estimate the consequences of changes of the tax base regulations for the tax burden of groups and tax distribution, in contrast to already existing methods. This is an extensive enhancement of the current state of research. Firstly, the results are important for developing a concept of the corresponding regulations' by the European Commission. Secondly, because of the regulations influence on the tax distribution and the repercussions on the national tax code, the member states are affected financially and legally. Thirdly, the consolidated group taxation confronts the affected companies with modified general conditions, which will have a deep impact on their constitutive and operational decision-making process. Therefore the plan is to integrate business behavioral reactions into the microsimulation model.