EU tax harmonisation back on agenda

THE issue of harmonising tax rates across the EU has been put back on the table by members of the European Parliament when discussing proposed legislation on the consolidated corporate tax base.

Ireland has been battling against efforts that would force it to raise its 12.5% tax on companies because it is one of the main means of attracting multinational corporations into the country, according to the Government.

But Taoiseach Enda Kenny had to agree to consider the Commission’s proposal to provide a single method for companies based in the EU to assess their tax liability. It does not include harmonising tax rates, but Ireland has long seen it as a method of introducing this by the back door.