War of words over EU’s corporation tax ‘gesture’

SENIOR EU sources denied Taoiseach Enda Kenny was asked to increase the corporation tax rate in exchange for a reduction in the interest rate on the bailout at Friday’s eurozone summit.

They say he was asked to agree to “engage constructively in the question of tax co-ordination” which did not tie him into changing the country’s tax policies.

A spokesperson for the Government denied the claims, saying the Taoiseach was asked for a “gesture” and understood it as an attack on our corporation tax rate. “He was not happy with it ... as he had started the process of having the rate lowered and it had been established when it was granted to the Greeks,” he said.