Dáil Éireann Debate, Wednesday - 23 June 2004
28 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 enhanced co-operation provision of the EU Treaties. [18685/04]
Amharc ar fhreagraAs I said in my reply to Question No. 68 on 6 May, the Commission issued a communication in 2001 setting out its twin track approach to company taxation. It is 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 long-term comprehensive measure, a common consolidated corporate tax base for companies for their EU-wide activities. The Commission made it clear that this did not involve harmonising 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 was 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. We support efforts to eliminate unfair business tax practices in the EU and the removal of barriers to cross-border trade and business.
It is now suggested that member states which favour the common consolidated corporate tax base should proceed under enhanced co-operation. Ireland does not favour such a course of action. However, it is a matter for each member state to decide whether to participate in an enhanced co-operation procedure. Ireland does not intend to do so. It has not been established that we are in a position of last resort where adoption of enhanced co-operation would be appropriate. Ireland's opposition to the harmonisation of corporation tax is well known and clear. It is important that the tax rights of member states are retained at the national level. Recently such rights were confirmed in the EU Constitution agreed by the 25 Heads of Government.
