Mr. Pierre Moscovici:

We might have differences which we would need to discuss in a very precise manner. Our assessment is not the same. The Irish tax base and the common base in terms of the CCCTB are roughly the same size. The impact the apportionment formula will have on individual member states' tax base will need to be looked at closely during the Council negotiations. Any technical analysis Ireland, through its Government and Parliament, can provide will be very welcome so long as it is based on the proposals now on the table. Previous analyses were based on assumptions about the 2011 proposals, but we are now dealing with different proposals. In any case, we need to discuss the issue. I repeat that we are at the starting point of the negotiations and cannot jump to conclusions. It is clear that what I am looking for is a compromise and that a compromise cannot be based only on the ideas of the Commission. I am taking an open-minded approach.

The fact that Ireland has different tax rates is unusual within the European Union and it is true that this will change with the CCCTB. There will be only one taxable profit figure to be taxed at whatever rate the member state chooses to set. However, member states' sovereignty is still protected because each member state will have full control in setting that rate. We always refer to the 12.5% rate because it is the crucial one, but there is absolutely no threat to it. I believe Ireland's other two corporate tax rates apply mostly to passive income and capital gains and that they generate much less tax revenue. If Ireland wants to keep these additional rates for companies outside the CCCTB system - it is mandatory for the big ones but optional for the others - it will, of course, be free to do so. However, within the CCCTB system companies will appreciate the simplicity of having a single national rate. Ireland might also judge this to be appropriate, but again, I repeat, this is the starting point for the discussion. I want to make it clear that it is not a threat to the Ireland's sovereignty as far as tax policy is concerned.