Ireland faces EU clash over tax rates

IRELAND is on course for a clash with France and Germany after Europe's two largest nations proposed harmonising tax rates across the economic bloc.

Ireland has benefited from the lowest rate of corporation tax and has resisted harmonised rates from the fear that multinational investors will flee the country.

Germany and France yesterday called on the European Commission to harmonise the way firms calculate their corporate tax bills and "if possible" propose a minimum tax rate, according to a letter obtained by Reuters.