Dublin Chamber told EU ‘not interfering’ with Irish tax

THE EU is not seeking to interfere with Ireland’s corporate tax rate, officials of Dublin Chamber said yesterday.

Speaking from Brussels, Aebhric McGibney, director of policy and communications, Dublin Chamber, said delegates from Dublin were given categoric assurances that the commission “has no intention” of imposing a higher rate of CPT on Ireland.

Mr Gibney stressed the chamber’s delegation in Brussels had been given a clear understanding from top Brussels officials the commission was not going to force Ireland to abandon its key rate of 12.5%.

Fears were raised in early October that the low rate would have to be abandoned when the Economics Commissioner Olli Rehn warned Ireland’s days as “a low tax country” were effectively over because of the need to raise taxes to get the budget deficit back to 3% by the end of 2014.

Rehn made his remarks following a Le Monde article that said Brussels wants the Government to abandon the 12.5% rate as it embraces austerity measures to get the national finances back on track.

Following in-camera meetings with senior EU officials and politicians, Dublin Chamber was told Ireland’s rate of corporate tax remained a “national decision” and was not one that the European Commission would get involved in.

When the controversy arose former European Parliament president Pat Cox warned Brussels that any attempt to force Ireland to lower its attractive corporate tax rates for overseas companies — and bring them in line with other EU member states — would constitute “a grave error of judgment by the EU” and would be contrary to international law.

Dublin Chamber is currently leading a trade delegation in Brussels, representing Ireland at the European Parliament of Enterprises.

During their meetings a range of issues were discussed, including NAMA, tax harmonisation, innovation policy, and the Irish Economy.

Afterwards Dublin Chamber president Peter Brennan said his delegation stressed the importance of a review of benchmarking in terms of public sector pay.