Dáil Éireann Debate, Thursday - 26 March 2015
65. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that proposals for a consolidated tax base throughout Europe will not detrimentally affect foreign direct investment, FDI, to this country; and if he will make a statement on the matter. [12564/15]
View answerWhile Ireland is participating constructively in the discussions on the Common Consolidated Corporate Tax Base draft directive (CCCTB), no consensus has yet been reached by Member States on this proposal.
We are committed to an active engagement on this tax dossier and on other discussions being undertaken at EU level to tackle tax fraud, tax evasion and aggressive tax planning. Only by actively engaging on these matters can we ensure a full and comprehensive discussion and advancement of Ireland's interests in these areas.
This engagement has no impact whatsoever on our corporation tax rate. In fact the draft proposal on the CCCTB specifically states that there is no intention to extend harmonisation to the rates.
We remain steadfastly committed to the 12.5% corporation tax rate on companies' trading profits which is a central element of our strategy for an export led sustainable economic recovery and which promotes investment and employment. We will continue to play fair but play to win.
The Commission has indicated that it intends to relaunch the CCCTB proposal as part of its June Action Plan on Corporate Tax. Ireland will actively participate in any ensuing discussions, however, we would not support any proposal to harmonise tax rates. Tax harmonisation would reduce the flexibility of Member States, in particular smaller Member States, to address particular economic objectives.
