EU’s Corporate Tax proposal would impact on tax rates – Pearse Doherty TD
Sinn Féin Finance Spokesperson Pearse Doherty TD has said the EU Commission’s admission today that the proposal would allow only a single tax rate for qualifying businesses’ profits as opposed to the current three rates means the proposals do have an impact on tax rates.
The fact that two of the rates would have to be abolished for companies taking part in CCCTB means the EU’s proposals are not, as claimed by the EU Commission, neutral on the question of rates and the power of countries to set their own rates.
Deputy Doherty was speaking after an exchange with EU Commission officials where they confirmed to him that only a single business tax rate could exist if the Common Consolidated Corporate Tax Base came into force. He said:
“Today’s admission that the EU’s proposals would mean that two of the existing tax rates applied to qualifying businesses would have to be abolished shows that the proposal is not neutral on the question of rates as claimed. The issue of tax sovereignty is a critical one and the EU Commission have done themselves no favours in trying to spin the CCCTB as being unrelated to tax rates.
“I believe the EU Commission adopted an arrogant attitude today by not being upfront about what their proposal means for tax rates. The CCCTB will only be mandatory for very large companies. If the 25% non-trading Corporation Tax rate and the 33% Capital Gains Tax are removed, as would be most likely, and only the 12.5% rate maintained then it is these larger companies that will benefit from the CCCTB and the taxpayer that will have to fill the hole.
“Much good work has been done by the OECD and even the EU on tax transparency but the CCCTB strays onto the ground of ideologically driven and poorly thought out policy dreamed up in Brussels with little regard to the real world. I look forward to scrutinising the proposal further, hopefully in a more open and honest fashion.”