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EU/EFTA TTC

//EU/EFTA TTC

About The Study

The tax landscape is changing. There is a lack of trust in large business and a concern that globalization has benefitted large companies rather than the population at large.

The concern is particularly acute around the taxes paid by the largest companies. As governments in the European Union (EU) and the European Free Trade Association (EFTA) strive to balance the need to raise revenues with a desire for a tax regime that attracts and retains business and encourages it to grow, a broad range of stakeholders is asking whether companies are paying their ‘fair share of tax’ and requires more transparency.

There is limited data to inform the debate over the contribution of large business in taxes. Besides taxes that companies pay as taxpayers, they are also responsible for collecting taxes on behalf of for instance their employees, clients, and service providers, and pay them to governments. However, there is little visibility over these other business taxes.

In order to collect relevant data to help inform the debate, the EBTF commissioned in 2018 the EU/EFTA EFTA Total Tax Contribution (TTC) Study. The purpose of the study is to raise awareness and aid understanding of the contribution of large business in the EU and EFTA.

The study follows PwC’s TTC framework; an established methodology that allows organisations to measure all the taxes that they pay, the taxes they collect on behalf of governments, and other contributions they make to the wider economy. The framework applies to any tax regime and, as used in other studies (e.g. the UK 100 Group Total Tax Contribution study) has been discussed with governments and other stakeholders around the world. PwC acts as a ‘black box’ ensuring anonymity of data and building of a robust database.

2020 Study

The EBTF invited 140 of the largest companies in the EU/EFTA, measured by market capitalisation and revenue to participate. The study attracted strong interest with over half of the invited companies attending a web-conference to find out more about the study, with 46 companies (5 more than last year) finally participating in the study. The study collected TTC data on participants’ tax payments in the EU/EFTA for accounting periods ending in the year to 31 December 2019.

2019 Study

The EBTF invited 130 of the largest companies in the EU/EFTA, measured by market capitalisation and revenue to participate. The study attracted strong interest with over half of the invited companies attending a web-conference to find out more about the study, with 41 companies finally participating in the study. The study collected TTC data on participants’ tax payments in the EU/EFTA for accounting periods ending in the year to 31 December 2018.

Total tax contribution – A study of the largest companies in the EU and EFTA – 2020 Report – Click here to download

Total tax contribution – A study of the largest companies in the EU and EFTA – Key Results – Click here to download

 

 

Total tax contribution – A study of the largest companies in the EU and EFTA – 2019 Report – Click here to download

Total tax contribution – A study of the largest companies in the EU and EFTA – Key Results – Click here to download