Franco-German plan to harmonise corporate tax unveiled

A French and German paper to convince the EU to harmonise corporate tax rates met with stiff opposition from a number of countries, including Austria that described it as a “missile”.

Several countries warned that such moves could increase corporate rates and damage tax competition between member states.

These points are similar to those being made by Ireland, which has agreed to discuss constructively tax issues but is implacably opposed to harmonising either corporate tax rates or agreeing a common consolidate base on which they are calculated.