Sunday 26 February 2017

New EU attack on our corporate tax

Sarah Collins and Kevin Doyle

Pierre Moscovici
Pierre Moscovici

The EU has launched a fresh assault on the tax regime in Ireland and other countries with rules favoured by large multinationals.

Radical plans to be unveiled next week include a proposal to ban transfer pricing, which allows big companies like Apple to cut bills by shifting profits through low tax countries.

The Government and others have vetoed all previous attempts from Brussels to impose common tax rules.

But a string of scandals, including Luxleaks, as well as Brexit, are seen by officials as clearing the way for the more radical common tax plans.

The European Commission will say large companies should calculate their corporate taxes in the same way across the bloc.

The idea is known as a common tax base. The EU will also force companies to share out where they pay tax based on their sales, employees and assets in each EU country.

The rule changes would end the practice by Apple of booking European sales through Irish subsidiaries and paying most of its taxes here. It comes as Ireland battles for more than 1,000 medical and financial jobs that will have to relocate from London as a result of Brexit.

The Irish Independent has learned the Cabinet will give approval for a "political and diplomatic offensive".

Ministers will formally campaign for Dublin to be the new base of the European Medicines Agency (EMA) and the European Banking Authority (EBA).

It is a change in tack from a Government careful not to be seen to be actively 'stealing jobs'.

Irish Independent

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