EU harmonised business tax ‘bad for Ireland’

PROPOSALS for a harmonised corporation tax rate across Europe will be detrimental to Irish businesses, according to the country’s largest accountancy body.

Chartered Accountants Ireland met European Commissioner for Taxation Algirdas Semeta to outline what it described as serious issues in current EU tax proposals.

This was the first meeting between an Irish business group and the recently appointed commissioner for taxation and customs union, audit and anti-fraud.

The accountancy group said the Common Consolidated Corporate Tax Base (CCCTB) will have a negative impact on Ireland’s ability and the ability of other EU member states to attract Foreign Direct Investment (FDI).

The EU’s proposals for a CCCTB were originally discussed in 2001 and when he was appointed Mr Semeta outlined his support for the introduction of CCCTB.

This news comes as British Conservative Party leader David Cameron announces plans to turn Northern Ireland into an “enterprise zone” if he becomes prime minister.

Mr Cameron would consider changing the corporation tax rate in the North to encourage more inward investment.

He said he wanted to grow the size of the private sector to create jobs and investment.

Director of taxation with Chartered Accountants Ireland, Brian Keegan, said: “The consequences of a CCCTB will not be beneficial either to Ireland or to the EU as a whole.”

The Chartered Accountants argued that the circumstances which prompted the CCCTB proposals in the first place have changed radically since 2001 and the initiative as then envisaged may no longer be necessary.