Mr. Ronan Hession:

Essentially, that is correct. It would mean that companies above the threshold, that is, large companies with group turnover of more than €750 million, would operate under the common European rules regarding their tax bases, the kinds of reliefs that would be available, how losses are handled and what kind of accounting principles work. Such companies would work to that common set of rules. Companies below this threshold can opt into this if they wish, but it is optional for them. The previous proposal in 2011 was optional for everybody. The two significant differences are, first, that participation is mandatory above the threshold and, second, that the consolidation element will be considered after a base, if a base is agreed. Consolidation was considered alongside a tax base during discussions on the earlier proposal, whereas work on the two elements is now being carried out in sequence. Our initial focus is on the base, which, as I say, forms part of a European set of common rules for these larger companies.