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Common tax base plan backed by MEPs

A COMMON pan-European tax base has been backed by MEPs in Strasbourg who voted in favour of the move.

Once dubbed as tax harmonisation by the “back door” by Taoiseach Enda Kenny, the move means that a common consolidated corporate tax base (CCTB) will apply to companies and they will submit just one tax return no matter how many EU countries they operate in.

While countries maintain the right to set their own rate of tax, the taxable profits of these companies will be determined by the size of the businesses in each country.

Opponents of the plan say this does not include intangible assets like intellectual property and research and development operations that many multinationals operating here have.

There are also concerned that its introduction would make it more difficult for these firms to take advantage of Ireland’s low 12.5pc corporation tax rate.

452 MEPs voted in favour of the plan, 172 against and there were 36 abstentions.