Taxation and customs union

EC-IMF Conference "Corporate debt bias"

Brussels, 23 and 24 February, 2015

Since the beginning of the financial crisis, the corporate debt bias - due to the non-deductibility of the return paid on equity as part of production costs - has been high on the tax policy agenda. Indeed, this problem can generate distortions in the financial decisions of companies, leading to an excessive leverage and an increased vulnerability to economic shocks. It may also fuel international profit shifting through changes of the internal financing structure of multinational groups. In the financial sector, it may even have adverse effects on systemic risk. At the European level, this tax-induced bias has led to a recommendation for fixing it in the context of the European Semester.

The objective of the conference is taking stock of the recent tax policy debate on the corporate debt bias and the recent research mostly focused on the financial sector, gathering together academia and policy makers.

The conference took place in Brussels 23rd and 24th February 2015.

The video of the conference is available, as are the speeches and presentations:

Pierre Moscovici

Vitor Gaspar

Alfons Weichenrieder

Ernesto Zangari

John Vella

Rood De Mooij

Stephen E. Shay

Sven Langedijk

Tom Neubig

Vieri Ceriani