Written answers

Tuesday, 7 June 2011

9:00 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 87: To ask the Minister for Finance his position on the common consolidated corporate tax base. [13632/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 94: To ask the Minister for Finance if he stands by his comments that a common consolidated corporate tax base, CCCTB, is tax harmonisation by the back door. [12839/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 87 and 94 together.

The Government's position on the CCCTB is clear and unambiguous.

On 16 March this year the European Commission, which has the right of initiation in terms of bringing forward legislative proposals, published its proposal for a Common Consolidated Corporate Tax Base. This represents the beginning of a protracted process that will involve a detailed examination of the Proposal, line by line, by all Member States at Council. Both I and the Government have made it clear that Ireland, like all other Member States, intend to actively engage in that process because only in that way can we absolutely ensure that all of the arguments are brought to the table.

I want to assure the Deputy that it is clearly understood that our engagement is strictly on the basis that taxation is a matter of national competence and that the principle of unanimity in taxation is fully respected.

The explanatory memorandum attached to the Proposal explicitly states that there is no intention to extend harmonisation to the tax rates applied in Member States; however, the Proposal does involve the introduction of common rules for the computation of the tax base. The introduction of common rules across all Member States for the calculation of the tax base of companies is of course tax harmonisation in any language.

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