Republic may veto tax harmony move

IRELAND could veto proposals on corporation tax changes at EU level, allowing it to retain its attractive 12.5% rate.

The veto, said Davy, is enshrined in the Lisbon Treaty, on which Ireland will hold a referendum on June 12.

Davy economist Rossa White said any move towards tax harmonisation across Europe of a tax change at EU level has to be a unanimous decision by all 27 states. The Department of Finance, in a statement issued to the Irish Examiner yesterday said: “Our position on our corporate tax regime is unambiguous. Our corporation tax system will remain and is protected, in an EU context, by the principle of unanimity in taxation matters.”