Wednesday 16 October 2019

EU's common tax base proposals 'unacceptable' says Noonan

Finance Minister Michael Noonan
Finance Minister Michael Noonan
Donal O'Donovan

Donal O'Donovan

EU corporation tax proposals are “not acceptable” to Ireland,” Michael Noonan has told a conference in Dublin.

The EU Commission’s proposal for a common consolidated corporate tax base (CCCTB) does not require a harmonisation of rates across Europe, but would require Ireland to choose just one of a pre-set range of rates.

“We would lose the flexibility to tax some profits and capital gains at a higher rate.  This is not acceptable to Ireland,” the minister said.

The Government here has already voiced its opposition to EU Commissioner Pierre Moscovici’s plan for a single set of tax rules to apply across the EU.

Adopting EU rules that diverge from international standards that will apply to businesses in Ireland’s main trading partners - the UK and US - would be especially harmful, Michael Noonan said.   

Ireland’s strong cultural and commercial ties with the US and with the UK make it essential that Europe does not depart from an international consensus on tax, he said at an event organised by the Irish Times.

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