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Veiled power grab on our corporate tax revenue is to be expected – Hayes

Brian Hayes, MEP for Dublin, today spoke out against comments made by Dutch MEP Paul Tang who said that Ireland’s corporate tax policy is akin to piracy. Mr Tang is visiting Ireland today to discuss the EU’s common consolidated corporate tax base (CCCTB).

“The comments made today by Mr. Tang simply reinforce the idea that a small number of big Member States just want to shift corporate tax revenue from Ireland to their countries. Yes, it is true that Ireland claims more investment from the United States than France and Germany combined. However, this is something we should be proud of – we have developed a highly competitive business environment with a skilled workforce and a young population that has evolved into a hub for technology firms.

“I hope that during his visit today, Mr. Tang will learn about real value-added from foreign direct investment and in particular the way in which Ireland has developed its business model. These are not brass plate operations; Google employs over 6,000 people in Ireland, Apple over 4,000 and Facebook over 2,000. These are real jobs and real people.

“Mr. Tang also admitted that he has no knowledge of the impact CCCTB will have on Ireland’s corporate tax revenue. How can Ireland ever sign up to something where we don’t know what the clear impact will be on our tax revenue? Estimates have put it that Ireland could lose over 50% of its tax revenue from CCCTB.

“In Davos this week, we will see more attacks on Ireland’s corporate tax policy. French President Emmanuel Macron is on a campaign to soak up as much corporate tax revenue for France as possible. And tax competition is to be welcomed but when big Member States start to point the finger at Ireland for not playing by the rules, that is when it becomes disingenuous.

“Ireland’s corporate tax system is clear and transparent. Tax avoidance is a scourge and must be tackled but this issue needs to be solved at an international level through the OECD, something that Ireland has clearly committed to. The attacks on our tax system will keep coming and we should continue to put up a strong front and resist these veiled power grabs on our well-earned tax revenue.”

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