Dáil Éireann Debate, Wednesday - 1 April 2015
22. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has evaluated any possible impact of a European Union consolidated tax base, with particular reference to the need to ensure that Ireland’s geographic peripheral position off the European mainland is recognised in any such discussion; and if he will make a statement on the matter. [13070/15]
View answerThe EU Commission published the proposal for a Common Consolidated Corporate Tax Base (CCCTB) in March 2011. The proposal provides for common rules for calculating the corporate tax base, a consolidated tax base for all group entities within the EU and apportionment of the consolidated tax base between Member States under a formula of apportionment.
While Ireland remains sceptical of the proposal, we are engaging constructively in the ongoing technical discussions on this issue at EU Council level. Only by actively engaging on these matters can we ensure a full and comprehensive discussion and advancement of Ireland's interests.
This engagement has no impact whatsoever on our corporation tax rate. The draft proposal on the CCCTB does not provide for any harmonisation of corporate tax rates within the EU. We remain steadfastly committed to the 12.5% corporation tax rate which is a central element of our strategy for an export-led sustainable economic recovery that promotes investment and employment. We will continue to play fair but play to win.
My Department commissioned Ernst & Young to carry out an independent economic impact assessment of the CCCTB proposal and this report was published in 2011. The results of this economic impact assessment indicate that CCCTB would result in a slight reduction in employment and foreign direct investment in the EU. It also points to the possibility of significant winners and losers arising from the re-distribution of tax bases among Member States.
It is clear from the discussions that have taken place to date on the various elements of the CCCTB proposal that there is no consensus among the Member States on the issue. The Commission is currently reviewing the CCCTB proposal with a view to a re-launch of the proposal in the summer and Ireland will actively participate in any ensuing discussions on the matter.
