ICAI critical of EU tax plans

The Institute of Chartered Accountants in Ireland has strongly endorsed the statement from the Department of Finance that it is for each member state to decide on the structure of its own tax system reflecting its own traditions and priorities.

This is in response to the EU proposals, known as CCCTB, which seek to impose an EU approach to the taxation of companies, with the tax to be divided out through a complex formula to member states.

A short statement setting out Ireland’s position has been posted to the Department of Finance website.

Brian Keegan, ICAI Director of Taxation said: “The CCCTB proposals will yield no benefit to either Irish or EU business, but will in fact make an already difficult process even harder for Irish companies.

"EU interference in Irish Tax policy is already particularly evident in the current Finance Bill where enhancements to BES, R&D incentives and the Shannon Basin incentives are subject to the grace and favour of Brussels.

"The good work that is being done in this year’s Finance Bill to simplify tax compliance for companies would be undone at a stroke."