Taoiseach steps up fight against EU tax plans

TAOISEACH Enda Kenny has ramped up the fight against plans to harmonise Europe’s corporate tax base saying such a move would be bad for Ireland.
Taoiseach steps up fight against EU tax plans

His comments come after an Oireachtas committee last week criticised a draft EU directive on the common tax base plans, warning they may suit larger members states more.

Mr Kenny yesterday told the Dáil that he would stress to fellow EU leaders at the next council meeting that Ireland was opposed to plans for a common consolidated corporate tax base (CCCTB).

It was “another method of tax harmonisation by the back door”.

“I do not support it. I have a very healthy scepticism about it. It’s bad for Ireland and bad for Europe,” he said.

There are plans to legislate for a uniform EU-wide system of calculating the tax base of businesses operating across the EU. It would mean companies would be able to opt for a simplified common system of rules for calculating their tax base.

The issue is being viewed as an alternative negotiating point with member states over lowering Ireland’s bailout interest cost after the Government ruled out moving on our corporate tax rate.

Fianna Fáil pressed Mr Kenny on EU plans for the CCCTB, warning that other countries had set out their stalls on the issue.

FF leader Micheál Martin said: “The evidence coming back every day is that either Germany or France in particular have been encouraged to keep pushing Ireland for unreasonable concessions on the issue of not just the tax rate but the base, because of what appears to be a changed negotiating stance on the part of the Government.”

Mr Kenny said: “I will articulate that very clearly when it comes before the Heads of Government meeting at Council level. The governments of other countries share this view very strongly.”

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