Table 1 Comparison of main CC programs... | Emerald Publishing

Table 1

Comparison of main CC programs in Europe

Feature	The Netherlands	Denmark	Austria	Italy
Program name	Horizontal monitoring	Tax governance	Horizontal monitoring/Accompanying supervision	Cooperative compliance
Year introduced (pilot)	2005	2008	2011	2013
Year codified (permanent)	2007	2012	2019	2015
Target population	Initially large businesses; now includes SMEs and tax intermediaries	Large businesses	Medium to large businesses	Large businesses
Size threshold	No specific turnover threshold	Revenue exceeding DKK 500 million (around € 67 million)	Annual turnover exceeding €40m	Turnover exceeding €10bn (2015-2019); reduced to €5bn for 2020–2021 with further reductions for years 2024 onwards
Key benefits	Real-time processing and discussion of tax positions; timely tax refunds; mitigation in re-active audit activity	Direct access, fast response and real-time clarification; predictability and minimised risk of re-active audits	Enhanced certainty; faster rulings; continuous dialogue; reduction of re-active audits	Reduction in penalties; expedited rulings; priority tax refunds without guarantees; continuous dialogue; reduction of re-active audits
Risk assessment approach	Relationship-based assessment	Relationship-based assessment	Combined assessment of TCF and compliance history	TCF assessment
TCF formality	Principles-based	TCF not compulsory; just recommended since 2017	Process-oriented	Detailed formal requirements
TCF assessment	Self-assessment	Regular tax governance review	External certification by a tax expert	Initial verification visit; detailed assessment (external certification required from 2024)
Literature	De Widt (2017); De Widt and Oats (2017); Goslinga et al. (2019); Huiskers-Stoop and Gribnau (2019); Siglé et al. (2022)	Boll (2017); Björklund Larsen et al. (2018); Boll and Brehm Johansen (2018)	Elmecker et al. (2016); Fiala and Ramharter (2019); Eberhartinger and Zieser (2021); Enachescu et al. (2019)	Manca (2016) Our study

Feature	The Netherlands	Denmark	Austria	Italy
Program name	Horizontal monitoring	Tax governance	Horizontal monitoring/Accompanying supervision	Cooperative compliance
Year introduced (pilot)	2005	2008	2011	2013
Year codified (permanent)	2007	2012	2019	2015
Target population	Initially large businesses; now includes SMEs and tax intermediaries	Large businesses	Medium to large businesses	Large businesses
Size threshold	No specific turnover threshold	Revenue exceeding DKK 500 million (around € 67 million)	Annual turnover exceeding €40m	Turnover exceeding €10bn (2015-2019); reduced to €5bn for 2020–2021 with further reductions for years 2024 onwards
Key benefits	Real-time processing and discussion of tax positions; timely tax refunds; mitigation in re-active audit activity	Direct access, fast response and real-time clarification; predictability and minimised risk of re-active audits	Enhanced certainty; faster rulings; continuous dialogue; reduction of re-active audits	Reduction in penalties; expedited rulings; priority tax refunds without guarantees; continuous dialogue; reduction of re-active audits
Risk assessment approach	Relationship-based assessment	Relationship-based assessment	Combined assessment of TCF and compliance history	TCF assessment
TCF formality	Principles-based	TCF not compulsory; just recommended since 2017	Process-oriented	Detailed formal requirements
TCF assessment	Self-assessment	Regular tax governance review	External certification by a tax expert	Initial verification visit; detailed assessment (external certification required from 2024)
Literature	De Widt (2017); De Widt and Oats (2017); Goslinga et al. (2019); Huiskers-Stoop and Gribnau (2019); Siglé et al. (2022)	Boll (2017); Björklund Larsen et al. (2018); Boll and Brehm Johansen (2018)	Elmecker et al. (2016); Fiala and Ramharter (2019); Eberhartinger and Zieser (2021); Enachescu et al. (2019)	Manca (2016) Our study

Note(s):

This table compares the different features of the main CC programs in Europe

Source(s): Authors’ own work