Brian Lenihan TD, Fianna Fáil Deputy Leader and Spokesperson on Finance, has urged the new Government to stand firm on the issue of a Common Consolidated Corporation Tax Base ahead of the European Summit in Brussels tomorrow (24 March).
Deputy Lenihan commented, “In response to a Fianna Fáil private members motion designed to send out a clear signal that Irish corporation tax policy is immovable, the Government have tabled an amendment introducing language about being committed to a “constructive and forthright engagement with all of our European partners on this issue”. What does constructive engagement mean and what signal will it send to those who want to invest here?
“The Government cannot leave the door open for participation in CCCTB. Two weeks ago, Taoiseach Enda Kenny himself said he opposed plans to establish a CCCTB and described this proposal as “the harmonisation of tax rates by the back door,” and not up for discussion.
“The European Commission proposal would see the introduction of a single set of rules which companies operating within the EU could use to calculate their taxable profits. This taxable income would then be divided up between all the countries the institution operates in, according to national corporation tax rates. Fianna Fáil believes this is a Trojan Horse and will ultimately lead to tax harmonisation. We have vehemently opposed the introduction of CCCTB over many years on the basis that we believe it would have very serious consequences for Foreign and Direct Investment, a cornerstone of our economic policy.
Deputy Lenihan concluded, “One of the main reasons multinationals who employ 100,000 people in Ireland are attracted here is because our corporation tax regime is reliable, fair and transparent. Any doubt on this is bad for investment, bad for jobs and bad for Ireland.”
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