CCCTB corporate tax threat looms large

France and Germany are pressing ahead with a plan to harmonise EU corporate taxes, an initiative the Irish Government has long vowed to reject.

A joint meeting in Paris, between French and German governments, is eyeing the big prize of harmonising their tax systems, as advances on broader eurozone reform look unlikely.

The two countries are due to launch a €1bn fund to finance digital investments, French president, Emmanuel Macron, said.

However, real progress on economic integration could be achieved if the two eurozone heavyweights agree on concrete steps for harmonising the way corporate taxes are assessed.

German business newspaper, Handelsblatt, said finance ministers from both countries would present a roadmap, by mid-September, on how to align the basis for assessing corporate tax.

The plan would be finalised by December and could then be adopted next year, Handelsblatt added, citing sources involved in the negotiations.

Finance Minister, Paschal Donohoe, met with EU economics chief, Pierre Moscovici, in Brussels earlier this week. Mr Moscovici has been directed by the commission to win support and implement a new version of the common consolidated corporate tax base (CCCTB), after attempts by the EU to secure CCCTB ran into the sands over a decade ago.

The plan is widely viewed as a threat to Ireland’s low corporate tax regime.

  • Additional reporting Reuters

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