European corporate tax plans under fire

The European Commission believes that the only systematic way to address the underlying tax obstacles which exist for companies operating in more than one Member State in the Internal Market is to provide companies with a consolidated corporate tax base for their EU-wide activities.

While this aspirations have not progressed due to opposition there is a feeling that the plans might move forward in 2011 as Angela Merkel, the German chancellor, and Nicolas Sarkozy, France’s president, listed the creation of a common corporate tax base as part of their controversial plans for closer economic co-operation.

However, there is still considerable opposition to the concept including from business groups in Ireland.

European Commission: Taxation and Customs Union: Taxation: Company Tax: Common tax base http://ec.europa.eu/taxation_customs/taxation/company_tax/common_tax_base/index_en.htm

Ireland: Department of Finance: Taxation issues: Common Consolidated Corporate Tax Base http://www.finance.gov.ie/viewdoc.asp?DocID=4543

IBEC: Press Release, 4.2.11: IBEC warns against any EU tax harmonisation move http://www.ibec.ie/IBEC/Press/PressPublicationsdoclib3.nsf/vPages/Newsroom~ibec-warns-against-any-eu-tax-harmonisation-move-04-02-2011?OpenDocument?OpenDocument

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