Ireland does not favour Common Tax Rates in EU

Wednesday the 30th of May 2007

Irish business strongly opposes the introduction of a Common Consolidated Corporate Tax Base (CCCTB) on a number of grounds. Firstly, the introduction of CCCTB will increase the amount of corporation tax paid by businesses. Secondly, it will not reward efficient producers. Thirdly, it will introduce a strong element of uncertainty for businesses operating in the EU. Fourthly, it will have an adverse impact on foreign direct investment. Fifthly, it will cause damage to the competitiveness of peripheral regions and those with small domestic markets, ultimately undermining the competitiveness of the whole EU. Finally, it will reduce the flexibility of the tax system and fail to introduce significant savings for business. CCCTB will be the key dossier for the Irish Government in the coming years, in which all relevant government departments will have a role to play.