Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

On the issue of the common consolidated corporate tax base, CCCTB, the Irish objection is not just based on how profits are allocated across EU member states for taxation. The calculation of the base itself, from the analysis that we have conducted, will result in a much narrower base compared with the current and much broader Irish calculation of taxable profits.

There is huge concern about the allocation of these profits on the basis of where the sales occur, where the assets are held and where the employment is based. We are coming from the perspective of a country where 80% of corporation tax receipts are raised from the multinationals sector. We have an enormous amount to lose if this goes wrong. Our current assessment is that it will potentially be very damaging for Ireland. Mr. Moscovici has said each country will retain sovereignty over its tax rates, but he has also said countries can only apply one tax rate. In Ireland we have the headline rate of 12.5%, but we also have a 25% rate for non-trading income and a 33% rate for chargeable or capital gains. These rates will go under the Commission's proposals. This seems to be a significant encroachment on our national sovereignty and competence in the area of taxation.

That is a very brief summary of my concerns and those of my party about these proposals as currently constituted.