Pat Rabbitte (Dublin South West, Labour)
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Question 22: To ask the Minister for Finance if he will provide an update on the discussions between him and his officials with their EU counterparts in respect of the proposed common consolidated corporate tax base; and if he will make a statement on the matter. [34051/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Commissioner Semeta was in Dublin on Monday 20th September last to address a joint EU-USA conference for investigators and prosecutors on the subject of tobacco fraud which was organised by the European Anti-fraud Office and the Revenue Commissioners.

In the margins of that conference I had a bilateral discussion with the Commissioner and his officials on EU tax policy issues including the Common Consolidated Corporate Tax Base, CCCTB. The Commissioner confirmed his intention to bring forward a proposal to the Council of Ministers sometime in the New Year.

For my part I reiterated our scepticism towards a CCCTB and said that while we are prepared to engage and work with the Commission in a positive manner in relation to tax matters, we would also uphold the principles that we and others believe in, in terms of subsidiarity, national discretion and competitiveness. I indicated to the Commissioner the need to analyse the likely impact of the CCCTB on employment and foreign direct investment in the EU. I also stated that the CCCTB could prove to be very divisive in that it could create significant winners and losers among Member States through the redistribution of tax bases.

As part of our strategy on the CCCTB my officials are also in regular contact through our Embassy network with other Member States. We will have an opportunity for face to face discussions with our EU counterparts at a CCCTB workshop which has been organised by the Commission for 20th October next in Brussels. Furthermore, a new high level tax policy group, under the Chairmanship of Commissioner Semeta and to include representatives of all Member States is due to have its inaugural meeting next month at which we will have a further opportunity to engage with our EU counterparts on EU tax policy issues.