Minister must publicly confirm opposition to latest EU proposal on taxation – McGrath


- Commission seeks submissions on plans to change how decisions on taxation are made -

Following the roadmap announced by the European Commission proposing the end to unanimity for issues surrounding taxation, Fianna Fáil Spokesperson on Finance Michael McGrath TD has called on the Minister for Finance Pascal Donohoe TD to publicly state his opposition to such a move.

Deputy McGrath commented, “It is crystal clear that certain European Member States and members of the European Commission want to undermine Ireland’s competitive corporation tax offering.  This has been the case for some time and this latest proposal again highlights this.

“Under the Lisbon Treaty, corporation tax is a matter for sovereign Member States and is not the competence of the European Union.  European taxation proposals currently require unanimous support at Council level.  This is there simply to protect the national sovereignty on issues related to taxation.

“Recognising that plans to introduce tax harmonisation measures by the conventional route have stalled, the Commission wishes to change the rules by removing the unanimity requirement and move to Qualified Majority Voting.  If this requirement was to be removed, the Commission would find it easier to push through its Common Consolidated Corporation Tax Base (CCCTB) proposal and its Digital Tax proposal.

“This would leave Ireland in a much weaker position.  Fianna Fáil opposes any attempt to undermine Ireland’s corporation tax regime and that includes the CCCTB proposal.  Furthermore, Fianna Fáil does not support these latest proposals to remove the unanimity requirement for taxation issues.  I call on Minister Pascal Donohoe to publicly reject these latest proposals.

“Any progress on corporation tax reform must be taken at a more global level through the OECD’s BEPS programme.  Ireland must continue to engage on issues surrounding corporation tax reform but we must not be afraid to stand firm against efforts to undermine our industrial and taxation policy”, concluded Deputy McGrath.