Brian Hayes MEP today took the opportunity during a European Parliament debate to state that the European Commission should investigate effective corporate tax rates employed by countries rather than focusing on harmonising tax policies.
“We need to have a radical debate about effective corporate tax rates. Many countries have headline corporate tax rates of over 30 per cent, yet their effective rates are as low as 8 or 9 per cent. The World Bank and PWC conducted a report in 2013 which found that the effective corporate tax rates in France is 8.2 per cent compared to its headline rate of 34.4 per cent.
“Because Ireland has a transparent and open corporate tax system, the World Bank found that our effective corporate tax rate is 11.9 per cent, which is very close to the headline rate of 12.5 per cent.
“Today I voted against a European Parliament resolution which asks the European Commission to conduct a study on the introduction of a minimum corporate tax rate in Europe. The EU Treaties make it clear that corporate tax rates are not an EU matter, it is for Member States to decide.
“I believe that European citizens stand united against aggressive tax planning. But I do not believe that European citizens want a harmonised system of corporate tax rates.
“I welcome the Commission’s proposals from last week on tax transparency. We have to take an aggressive position when it comes to tax evasion from large corporations and I believe the Commission is moving in the right direction by regulating how countries share tax information.”