Bernard J. Durkan
Question:130 Mr. Durkan asked the Minister for Finance his views on tax harmonisation in the euro zone; and if he will make a statement on the matter. [25584/02]
Vol. 559 No. 1
130 Mr. Durkan asked the Minister for Finance his views on tax harmonisation in the euro zone; and if he will make a statement on the matter. [25584/02]
Ireland supports the retention of national sovereignty in tax matters and has long cherished its view that it is appropriate for fiscal matters in the European Union to be decided on a unanimous basis. A case has not been made that the introduction of the euro makes such harmonisation either necessary or desirable nor that the current position adversely affects the operation of the internal market. Tax harmonisation would ignore the varying needs and motivations of the member states' differing economic, social and cultural backgrounds.
In relation to the area of corporate taxation, Ireland has a transparent corporate tax regime that encourages investment by having a competitive rate. In an EU context, to the extent that differences in corporate tax treatment cause barriers to trade and investment, we are quite prepared to work to remove these. I am of the opinion that making progress on those types of issues does not require full harmonisation of systems and rates. Therefore, I do not support any procedure that would lead to the introduction of a harmonised rate of corporation tax across the European Union.