EU corporate tax plan could isolate Ireland politically

EU regulators have renewed a push to create a common base for calculating taxable corporate profits with draft legislation that threatens to isolate Ireland politically as the UK prepares to quit the bloc.

The European Commission proposed a single method for multinational companies to calculate income to avoid the cost of complying with different rules in each EU country where they file a return.

Tax rates would remain in national hands under the draft law on a common consolidated corporate tax base, which the commission said could cut companies’ compliance costs by 2.5%.