Michael McGrath (Cork South Central, Fianna Fail)
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Question 65: To ask the Minister for Finance his views on whether recent proposals from France and Germany in relation to accelerating implementation of a common consolidated tax base within the EU pose a significant risk in respect of Ireland's long-established corporation tax policy; and if he will make a statement on the matter. [5820/12]

Michael Noonan (Limerick City, Fine Gael)
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Although no formal proposals have yet been presented to the European Council, I understand mainly from media coverage that France and Germany are preparing a submission which recommends an acceleration of the negotiation process with regard to the European Commission's proposal for a Common Consolidated Corporation Tax Base (CCCTB). The call for acceleration may reflect their concerns at the pace of the negotiations at the Council working group where approximately only one third of the text of the CCCTB proposal has been the subject of an initial examination. The Danish Presidency are expected to present a progress report on the CCCTB discussions to Ecofin in May or June.

With regard to the risk to Ireland's long established corporation tax policy, I would like to remind the Deputy that it is a well accepted principle that the setting of tax rates is the prerogative of each Member State.

The explanatory memorandum attached to the European Commission's CCCTB 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.

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.