CCCTB should be parked until we have a country-by-country impact assessment – Hayes
Brian Hayes MEP today said that it is vital that the Commission gives full disclosure about the impact of CCCTB on a country-by-country basis.
“It is very unfortunate that the Commission has not done a country-by-country assessment of the impact that the CCCTB plan will have on Member States’ corporate tax revenue.
“The key issue that Member States will be asking about CCCTB is how much they stand to win or lose in terms of tax collection. Yet in the impact assessment of CCCTB carried out by the Commission, there is no mention of how Member States will be affected individually. The policy making on the hoof like this is not acceptable. I have written to Commissioner Moscovici to urge the Commission to conduct a country-by-country assessment of the impact of CCCTB.
“The Commission has never divulged clear and comprehensive statistics on the impact of CCCTB on tax revenues. Commissioner Moscovici appeared before the Joint Oireachtas Committee on Finance in January and he was unable to provide answers to some very plain and simple questions about how CCCTB will affect Ireland.
“Mr. Moscovici said that CCCTB would constitute an estimated loss of around 0.2% on Irish tax revenue. However, earlier this week IBEC said that there would be a loss of around 7.7% of Irish tax revenues if CCCTB were implemented.
“I have directly asked Moscovici to give clarity about how they arrived at their 0.2% estimate. It is extremely confusing for Irish people to get two drastically different estimates about the impact of this major proposal on our tax revenues. While the Commission is of course on a charm offensive to sell CCCTB, we have to ensure that there is no misleading data.
“The fact is that 7 national parliaments have objected to the Commission’s proposal, including the Dáil. They have objected on the grounds of subsidiarity and they have every right to do so. If the Commission wants CCCTB to succeed, they need to convince Member States like Ireland, Sweden and the Netherlands that this policy is in their interest. That must involve providing full and comprehensive data about the true impact of CCCTB on our tax revenues.
“This week we saw that President Trump is proposing to reduce US corporate tax rate to 15%. I believe the EU needs to carefully consider the potential impact of such a proposal. EU Tax plans such as CCCTB should take a back seat while we get a clear understanding of how such a drastic tax change could affect the EU economy.”