Updated: 26/10/16 : 06:29:25Printable Version
The European Commission’s proposal on CCCTB (Common Consolidated Corporate Tax Base) has real potential to reduce the amount of corporation tax that Ireland collects.
This was stated by Marian Harkin MEP during a debate in the European Parliament in Strasbourg on the proposals from Commissioner Muscovici to introduce CCCTB.
Earlier, Sligo based Ms. Harkin had a meeting with Commissioner Muscovici to discuss his proposals.
She said:-“ I asked Commissioner Muscovici if any analysis had been done to see what countries will lose corporation tax revenue and what countries will gain corporation tax revenue under the apportionment model the Commission has proposed. That model will mean that small countries like Ireland and the Netherlands with a small domestic market and who have attracted significant foreign direct investment will lose out on current corporation tax revenue. We need to see figures so that countries will know the extent of the proposed change because there will be winners and losers here.
“Yes our tax rate will remain untouched but it is clear that tax sovereignty will be eroded with member states handing over new powers to the Commission. Ireland faces a difficult situation. These proposals are one way that we can limit tax evasion in the EU but they come at a cost, eroding tax sovereignty and undermining Ireland’s corporation tax revenue. I know from speaking to Commissioner Muscovici, I know from listening to what is being said in the European Parliament, that Ireland will come under significant pressure to acquiesce to these proposals.
“We must hold our nerve, agree to proposals that will combat tax evasion but ensure that we maintain tax sovereignty and do not lose out financially in the final calculations”, Marian Harkin concluded.