EU must respect Member State competence on tax and stop working to introduce CCCTB by the ‘backdoor’

Speaking ahead of a European Parliament debate on the proposal for a Council directive on a Common Consolidated Corporate Tax Base (CCCTB) this afternoon, Liam Aylward, MEP for Ireland East has called on the European Commission and sectors of the European Parliament to cease with their efforts to introduce competence in tax issues through the backdoor.

“Tax is an issue of national competence and the European Commission must respect this. Under the additional protocol on the concerns of the Irish people in relation to the Treaty of Lisbon, with was supported in the European Parliament today, tax is recognised as the competence of Member States.”

The Ireland East MEP insisted that the European Commission should not use the economic crisis to undermine Member State competence on tax and move towards unnecessary and undesirable action on CCCTB.

“The call of France and Germany for CCCTB negotiations to be completed by the end of 2012 should not take precedence over the serious concerns of Member States who are opposed to any moves towards CCCTB and it should not be used as a tool to erode and undermine Member State competence in the guise of addressing the economic crisis.”

“The introduction of CCCTB in the EU will in no way enhance the functioning of the single market and would have the potential to adversely affect small open economies such as Ireland.”

In its original legislative proposal, the European Commission had suggested a voluntary scheme. The European Parliament text proposes that the system be made mandatory throughout the EU after a transition period.

“I will certainly be voting to oppose this new proposal on CCCTB but it is essential that this issue does not gather momentum. Member States’ rights in relation to taxation are fundamental to economic recovery and must be fully respected and upheld.”