Brian Hayes MEP today (Wednesday) said that other EU Member States need to clean up their tax arrangements following Ireland’s removal of the “double Irish” tax deal in yesterday’s budget.
“The removal of the double Irish tax deal is a huge step in a long-running process to improve Ireland’s corporate tax arrangements. Other Member States should take note of this and take similar decisive action,” said Mr. Hayes.
“For example, Britain’s tax deal for intellectual property firms accounts for an almost £1bn a year tax break for profits from patented products and processes. Similar arrangements exist in countries such as Luxembourg, Netherlands, Malta and Belgium.”
“Ireland has come up against criticism from the European Commission and several EU Member States for its corporate tax policy. In response, we have made significant efforts to improve our corporate tax policy, firstly by introducing the Domicile Levy in 2010, this was followed by a Public consultation which aimed to see tax loopholes shutdown and yesterday we saw the removal of the double Irish,” added Mr. Hayes.
“Ireland’s international reputation has gained more credibility following yesterday’s decision. Our standing in the international tax environment has improved significantly and this is evidenced by both the OECD and the European Commission coming out publicly in support of the effort made.”
“It is now time for others to take example from Ireland and curb harmful tax practices. And the focus should not be only on smaller Member States which is often the case, bigger Member States need to be accountable to international tax standards and EU state aid rules,” concluded Mr. Hayes.