EU Directives

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Ceisteanna (285)

Pearse Doherty

Ceist:

285. Deputy Pearse Doherty asked the Minister for Finance further to the EU summit statement on 29 June 2012, which states similar cases will be treated equally, if he will set out the efforts that he has made to reverse the condition imposed on the State in July 2011, when a cut in interest rates on programme funding was made conditional on the State agreeing to participate constructively in the discussions on the common consolidated corporate tax base draft directive, CCCTB, and in the structured discussions on tax policy issues in the framework of the Euro+ Pact framework in view of the fact that the cut in interest rates in July 2011 on Portugal's programme funding was not conditional on any such potential concessions on tax arrangements. [38504/12]

Freagraí scríofa

Minister for Finance

As a committed member of the European Union Ireland always participates constructively in discussions at EU level as that is the only way to ensure that issues of concern to the State can be considered. Any attempt to reverse our approach now would be counterproductive, especially in view of the critical role to be played by Ireland during our upcoming Presidency. The Euro Plus Pact comes under the aegis of the Department of the Taoiseach which coordinates the updating of Ireland's set of objectives under the Pact.

This is an agreement which applies to all of the euro area Member States - as well as Bulgaria, Denmark, Latvia, Lithuania, Poland and Romania - and its focus is primarily on areas that fall under national competence. The Pact refers to a commitment by Member States to engage in structured discussions on tax policy issues, for example, to ensure the exchange of best practices, and fight against fraud and tax evasion while acknowledging that direct taxation remains a national competence. There is no commitment in the Pact on CCCTB. It simply says that: "Developing a common corporate tax base could be a revenue neutral way forward to ensure consistency among national tax systems while respecting national tax strategies, and to contribute to fiscal sustainability and the competitiveness of European businesses. The Commission has presented a legislative proposal on a common consolidated corporate tax base". There is no conditionality placed on the commitment made by Ireland in this statement.