Fine Gael to oppose move to harmonise corporation tax ‘through the back door’

Fine Gael to oppose move to harmonise corporation tax ‘through the back door’

The Fine Gael MEP group has today confirmed its opposition to proposals contained in a new EU report, saying it represents a further EU push for tax harmonisation.

Fine Gael MEP Brian Hayes today criticised the final report of the European Parliament’s TAX II Committee.

"At a time when the UK government is planning to reduce their corporate tax, it is not in Ireland’s interest that the European Parliament reheats once again their ambition for corporate tax harmonisation,” he said.

“That's bad for Ireland, bad for the EU and bad for business certainly.

“Brexit has introduced more uncertainty for the Irish economy. We in Ireland need to stay competitive, create new business opportunities and make it clear that our future remains in the EU and in the Eurozone.

“We need to remain firm on corporate tax.

"Now is not the time to push for corporate tax consolidation across the EU. Ireland must continue to work within the EU and in the OECD to tackle aggressive tax planning. But that must not mean that we move to a common EU corporate tax rate or consolidation of the EU tax code.

“This violates the right of Member States to set their own tax rates; this is a violation of tax sovereignty.

He added: “This final tax report includes several harmful positions such as calling for Member States to renegotiate their bilateral tax treaties in favour of EU wide tax treaties.

“It recommends the swift introduction of a mandatory CCCTB and calls for Member States to remove differences in their corporate tax systems.

“It also calls for a minimum effective taxation clause to be introduced in different Directives; this sets a bad precedent of harmonising tax rates through the back door.”

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