A European Commission proposal on a common corporate tax base must respect the sovereignty of national tax systems
Brian Hayes MEP today accompanied an EU tax delegation to Dublin which is seeking to examine Ireland’s corporate tax system. Speaking during the delegation visit, Mr. Hayes commented that an EU Commission proposal to introduce a common corporate tax base, which is expected to be released next month, must respect the principles of sovereignty enshrined in the EU treaties.
“It is very welcome that we have a European Parliament delegation coming to Dublin. Ireland’s corporate taxation system has taken a lot of criticism in recent years and this delegation presents an opportunity to clarify to our EU counterparts how Ireland’s corporate tax system really works. We have nothing to be ashamed about given the transparency and efficiency of our corporation tax system. In fact, the OECD recently concluded through its Global Forum on Tax Transparency that the Irish tax system is as good as anywhere in the world in terms of exchange of tax information.
“Ireland has moved positively and has come into line with international standards, particularly through working with the OECD, removing the ‘Double Irish’ and coming to an agreement on the FATCA arrangements with the United States.
“The delegation had a positive meeting with Finance Minister Michael Noonan this morning. Minister Noonan made a clear commitment to the OECD process of dealing with tax transparency as this is something that needs to be done at an international level.
“New plans are currently being drawn up for an EU Commission legislative proposal establishing a common corporate tax base in the EU. This is nothing new. A previous proposal on CCCTB was discussed among EU Member States but did not receive enough support. This is a sensitive issue and the Commission needs to be extremely careful that it does not encroach on Member States individual tax policy. The EU Treaties make it clear that Corporation Tax rates are not a Community competence, it is for Member States to decide.”