McCreevy set to defend tax rates

PLANS by the French Finance Minister to force countries like Ireland to raise their company tax rates or forfeit EU funding have been rejected by the European Commission.

But stiffer rules forcing companies that benefit from EU funds to pay back the money if they relocate within seven years will be proposed later this year.

Finance Minister Charlie McCreevy this weekend will spend possibly his last EU meeting in the job before becoming a Commissioner on November 1 defending Ireland’s low 14% corporation tax rate.