Dáil Éireann Debate, Tuesday - 23 March 2004
15 Mr. Allen asked the Minister for Finance his views on the proposal of the French Finance Minister to harmonise corporation taxes among some member states under the enhanced co-operation provision of the EU Treaties. [8695/04]
Amharc ar fhreagra46 Mr. Sargent asked the Minister for Finance his views on discussions between the European Commission and other EU member states on the possibility of harmonising corporate tax rates. [8982/04]
Amharc ar fhreagraI will take Questions Nos. 15 and 46 together.
In 2001, the Commission issued a communication setting out its twin track approach in the company taxation area as follows: targeting particular obstacles in the short to medium term by taking a direct approach to each of the issues and finding a specific answer to the problem and adopting a longer term comprehensive measure, a common consolidated corporate tax base for companies for their EU-wide activities. The Commission made it clear this did not involve harmonizing rates.
In November 2003, the Commission updated its position with a communication entitled "An Internal Market Without Company Tax Obstacles — Achievements, Ongoing Initiatives and Remaining Challenges". The common consolidated tax base has been discussed at EU conferences and has been the subject of a Commission consultation paper. Ireland does not see the Commission's proposals for a common consolidated base as an appropriate way forward. However, we support efforts to eliminate unfair business tax practices within the EU and the removal of barriers to cross border trade and business.
I understand that what is now being suggested is that member states who favour the common consolidated corporate tax base would proceed under enhanced cooperation. Ireland would not favour such a course. It is, however, a matter for each member state to decide on whether to participate in an enhanced cooperation procedure. Ireland does not intend to do so. In any case, it is not clear that it has been established that we are in a position of "last resort" where adoption of enhanced cooperation would be appropriate.
Ireland's opposition to the harmonisation of corporation tax is well known and clear. It is important that the rights of member states in relation to tax are retained at the national level.
