Tom Hayes (Tipperary South, Fine Gael)
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Question 104: To ask the Tánaiste and Minister for Finance if he foresees any threats to the Irish corporation tax regime; and his plans to mitigate the possible effects. [2128/08]

Martin Ferris (Kerry North, Sinn Fein)
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Question 112: To ask the Tánaiste and Minister for Finance his views on whether the work of the working group on common consolidated corporation tax base chaired by an official from the taxation and customs union directorate general of the commission is leading towards the introduction of such a CCCTB across the EU. [2395/08]

Arthur Morgan (Louth, Sinn Fein)
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Question 127: To ask the Tánaiste and Minister for Finance his views on whether the European Commission is determined to see the introduction of a common consolidated corporation tax base across the EU; and the impact this would have on this State. [2389/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 104, 112 and 127 together.

I want to assure the House that the Government's position on our corporate tax regime is unambiguous. It is clearly stated in the Programme for Government that the 12 1/2% rate of corporation tax will remain.

That commitment is protected, in an EU context, by the principle of unanimity in taxation matters. The draft Reform Treaty confirms that position.

I would note that although various technical work has been taking place, the Commission has not yet made any formal proposal in relation to the common consolidated corporate tax base (CCCTB) proposition, and I would hope that the Commission will reflect on the considerable scepticism and opposition to the proposition among member states before deciding whether to make any such proposal.

It is important also to remember that there have been no political decisions taken on the CCCTB at the level of the Council of Ministers.

Considering that the Commission has not yet brought forward a proposal it is very difficult for us or any other member state to estimate its impact with any precision. However, it seems very likely that if, theoretically, such a system were to be introduced, it could give rise to considerable disruption of foreign direct investment activities, could create a disincentive for the location of such investment within the EU, could reduce the ability of Governments, especially in smaller and faster developing member states, to manage their own fiscal affairs, and would be divisive in Europe.