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‘No move’ to harmonise tax rates

Commissioner Laszlo Kovacs

By Ian Guider
A COMPLETE harmonisation of corporation tax rates across Europe will not happen, the EU Taxation and Customs Commissioner said yesterday.

Speaking in Dublin, Commissioner Laszlo Kovacs said he would be putting forward measures for a common consolidated corporate tax base which would simplify tax calculation methods for companies operating across Europe.

The commissioner said his plan stops short of the introduction of a formal rate of corporation tax for all European countries, as favoured by some states.

The Irish Government are opposed to tax harmonisation, believing that the 12.5% corporation tax rate is one of the main drivers of foreign direct investment here.

Mr Kovacs said his measures would be a boost to the competitiveness of the European economy.

"If we think that competitiveness is even more important that national sovereignty then we have to harmonise some things.

"I have no ambition to harmonise corporate tax rates. But to harmonise the calculation of the tax base would certainly result in lower compliance costs, in less administrative burdens and ... it would increase the competitiveness of European companies who are doing business in more than one member state," he said.

The commissioner also gave details of two other proposals that have received a lukewarm reception from Ireland.

One of these is to introduce a "home state tax" for companies. This would allow small and medium-size companies to calculate the tax on their profits on the rate in their home state.

The commissioner is also planning new rules that would phase out Vehicle Registration Tax across the EU, but without reducing revenues.

Mr Kovacs met with Finance Minister Brian Cowen and other TDs to outline his proposals.

 

‘No move’ to harmonise tax rates

Commissioner Laszlo Kovacs

By Ian Guider
A COMPLETE harmonisation of corporation tax rates across Europe will not happen, the EU Taxation and Customs Commissioner said yesterday.

Speaking in Dublin, Commissioner Laszlo Kovacs said he would be putting forward measures for a common consolidated corporate tax base which would simplify tax calculation methods for companies operating across Europe.

The commissioner said his plan stops short of the introduction of a formal rate of corporation tax for all European countries, as favoured by some states.

The Irish Government are opposed to tax harmonisation, believing that the 12.5% corporation tax rate is one of the main drivers of foreign direct investment here.

Mr Kovacs said his measures would be a boost to the competitiveness of the European economy.

"If we think that competitiveness is even more important that national sovereignty then we have to harmonise some things.

"I have no ambition to harmonise corporate tax rates. But to harmonise the calculation of the tax base would certainly result in lower compliance costs, in less administrative burdens and ... it would increase the competitiveness of European companies who are doing business in more than one member state," he said.

The commissioner also gave details of two other proposals that have received a lukewarm reception from Ireland.

One of these is to introduce a "home state tax" for companies. This would allow small and medium-size companies to calculate the tax on their profits on the rate in their home state.

The commissioner is also planning new rules that would phase out Vehicle Registration Tax across the EU, but without reducing revenues.

Mr Kovacs met with Finance Minister Brian Cowen and other TDs to outline his proposals.

 

‘No move’ to harmonise tax rates

Commissioner Laszlo Kovacs

By Ian Guider
A COMPLETE harmonisation of corporation tax rates across Europe will not happen, the EU Taxation and Customs Commissioner said yesterday.

Speaking in Dublin, Commissioner Laszlo Kovacs said he would be putting forward measures for a common consolidated corporate tax base which would simplify tax calculation methods for companies operating across Europe.

The commissioner said his plan stops short of the introduction of a formal rate of corporation tax for all European countries, as favoured by some states.

The Irish Government are opposed to tax harmonisation, believing that the 12.5% corporation tax rate is one of the main drivers of foreign direct investment here.

Mr Kovacs said his measures would be a boost to the competitiveness of the European economy.

"If we think that competitiveness is even more important that national sovereignty then we have to harmonise some things.

"I have no ambition to harmonise corporate tax rates. But to harmonise the calculation of the tax base would certainly result in lower compliance costs, in less administrative burdens and ... it would increase the competitiveness of European companies who are doing business in more than one member state," he said.

The commissioner also gave details of two other proposals that have received a lukewarm reception from Ireland.

One of these is to introduce a "home state tax" for companies. This would allow small and medium-size companies to calculate the tax on their profits on the rate in their home state.

The commissioner is also planning new rules that would phase out Vehicle Registration Tax across the EU, but without reducing revenues.

Mr Kovacs met with Finance Minister Brian Cowen and other TDs to outline his proposals.

 

‘No move’ to harmonise tax rates

Commissioner Laszlo Kovacs

By Ian Guider
A COMPLETE harmonisation of corporation tax rates across Europe will not happen, the EU Taxation and Customs Commissioner said yesterday.

Speaking in Dublin, Commissioner Laszlo Kovacs said he would be putting forward measures for a common consolidated corporate tax base which would simplify tax calculation methods for companies operating across Europe.

The commissioner said his plan stops short of the introduction of a formal rate of corporation tax for all European countries, as favoured by some states.

The Irish Government are opposed to tax harmonisation, believing that the 12.5% corporation tax rate is one of the main drivers of foreign direct investment here.

Mr Kovacs said his measures would be a boost to the competitiveness of the European economy.

"If we think that competitiveness is even more important that national sovereignty then we have to harmonise some things.

"I have no ambition to harmonise corporate tax rates. But to harmonise the calculation of the tax base would certainly result in lower compliance costs, in less administrative burdens and ... it would increase the competitiveness of European companies who are doing business in more than one member state," he said.

The commissioner also gave details of two other proposals that have received a lukewarm reception from Ireland.

One of these is to introduce a "home state tax" for companies. This would allow small and medium-size companies to calculate the tax on their profits on the rate in their home state.

The commissioner is also planning new rules that would phase out Vehicle Registration Tax across the EU, but without reducing revenues.

Mr Kovacs met with Finance Minister Brian Cowen and other TDs to outline his proposals.