Bernard Durkan (Kildare North, Fine Gael)
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Question 167: To ask the Tánaiste and Minister for Finance the implications for this country in the event of EU tax harmonisation; and if he will make a statement on the matter. [29929/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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It is important to note that the Commission has not adopted any proposal for EU tax harmonisation. The Deputy may have in mind that the Commission services have been working at a technical level on developing a proposal in relation to a common consolidated corporate tax base (CCCTB). In view of the fact that the technical specifications for a CCCTB are only being developed by a Commission-led technical working group, it is not possible at this stage to estimate the economic impact of such a proposal. However, Ireland's opposition to tax harmonisation is well known. The Government's position has been clearly stated in the Programme for Government. Articles 93 and 94 of the EC Treaty specifically provide that any taxation proposals from the EU Commission require the unanimous agreement of the Council of Ministers. Ireland's stance should however not be misconstrued as one of opposition to European economic policy co-operation. On the contrary Ireland has a long and distinguished record of advancing the European agenda, but corporate tax harmonisation is neither necessary nor good for Europe. We do not see how it will advance European competitiveness or the Lisbon agenda or, indeed, how it will assist business generally.