Business Irish

Friday 18 August 2017

Ireland one of seven countries to object to CCCTB-Hayes

Fine Gael MEP Brian Hayes. Photo: Steve Humphreys
Fine Gael MEP Brian Hayes. Photo: Steve Humphreys

Sean Duffy & Independent.ie Business Desk

Seven countries in the EU have opposed the European Commission’s proposals for a common tax base across the continent, according to Irish MEP Brian Hayes.

The Commission announced details of a Common Consolidated Corporate Tax Base (CCCTB) in October of last year. The CCCTB seeks to apply a universal tax code for all multinationals operating inside the EU earning in excess of €750m.

Mr Hayes confirmed that the Irish parliament and six other EU legislatures had launched formal objections to the proposals.

“These seven national parliaments, including the Houses of the Oireachtas, have issued formal objections to the European Commission clearly stating that the CCCTB proposal does not meet the principles of subsidiarity,” Mr Hayes said. 

 “While this is a significant number of objections, it is not enough to trigger the formal yellow card procedure for EU legislation. For this to happen, at least 33pc of national parliaments must object to a proposal,” he added.

The proposal was objected to by Ireland, Sweden, Denmark, The Netherlands, the UK, Malta and Luxembourg.

Mr Hayes added that the CCCTB proposals would effectively remove Ireland’s sovereign ability to determine taxation rates.

“Consolidation of the tax base, however, effectively represents wide-scale tax harmonisation through the back door. It cuts across how Member States set their tax corporate rates and policy and is a cumbersome way of addressing cross-border tax losses,” Mr Hayes stated.

Commission spokesperson for taxation Vanessa Mock said that "have received seven reasoned opinions from the parliaments of Member States, representing 12 votes from a possible 56".

"This is normal for any legislation that the Commission puts forward. The reception of reasoned opinions does not mean that there will be difficulty agreeing legislation in the Council. These are the views of national parliaments and their committees. Not those of Member States themselves."

"The CCCTB is fully in line with the principle of subsidiarity. The legal base is Art. 115 TFEU – improving the functioning of the Single Market," she told independent.ie.

"The CCCTB is all about removing obstacles to the Single Market for businesses, which is not something that can be done at purely national level. It is also about tackling the complex cross-border problem of tax avoidance, which Member States cannot combat alone.

"The Commission responded in detail to all Member States that raised this issue in relation to the 2011 proposal. No Member State objected to our response." 

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