EU tax policy is a ‘profit grab’ for big countries

The Commission’s plan to shake up the way corporate taxes are paid across the union is the greatest threat to Ireland’s economy which could cost the country half of its corporation tax base, the Oireachtas Finance Committee has heard.

University College Cork economist Seamus Coffey, who is also a member of the Irish Fiscal Advisory Council watchdog, told TDs and senators plans by president-elect Donald Trump to reform the US tax system was less of a threat than Brussels’ so-called Common Consolidated Corporate Tax Base - CCCTB.

With the Government collecting a large chunk of Ireland’s corporation taxes from exporters, Mr Coffey said Ireland could lose up to 50% of its current corporation tax base if the CCCTB was introduced.