TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

ICAI Position Paper on CCCTB

ICAI has published a position paper on the Common Consolidated Corporate Tax Base (CCCTB), titled “Companies – A Harmonised Tax System for Europe?” It reflects the EU Commission's arguments for a CCCTB, along with the Irish Government position, and offers a reasoned critique of the practical implications of the proposals.

ICAI is advocating that all companies and business interest groups should familiarise themselves with the CCCTB proposals, and make their views known to our politicians and MEPs.

The ICAI paper is available at http://www.icai.ie/documents/CCCBT%20brochure%20final.pdf and will be reproduced in the January issue of tax.point.

ICAI Regulator's Conference

Revenue Chairman, Frank Daly, addressed the ICAI's Regulator's Conference on the key issues facing Chartered Accountants, including the OECD Tax Intermediaries Project; simplification within the Irish Tax System and CCCTB.

The Chairman's speech is reproduced at Section 2.03.

American Chamber of Commerce

In his address to the American Chamber of Commerce Thanksgiving Business Lunch, Minister Cowen poured cold water on CCCTB by saying that he believed that it will never happen.

The Minister mentioned two particular points:

  • Greater tax harmonisation would lead to the creation of a less competitive, high tax economic entity in relation to other economic blocks.
  • The CCCTB would hamper individual Member States from taking account of local needs while making it extraordinarily difficult for Europe as a whole to adapt to changes in the international business and technological environment in the global business cycle.

A copy of the Minister's address is available at http://www.finance.gov.ie/viewdoc.asp?DocID=5087.

IDA

Speaking at the recent Irish Examiner sponsored-Cork Chamber breakfast, Mr Sean Dorgan, IDA Chief Executive and former ICAI Chief Executive, has said that any attempts by the EU to harmonise the corporate tax base across Europe would not succeed.

The reason that the CCCTB would not succeed, according to Mr Dorgan, is an unwillingness of EU Member States to agree to a federal tax base, and also, it would hinder competition for investment.

Mr Dorgan is quoted as saying that “Europe cannot isolate itself from competition and European countries must be able to compete against each other for investment.”

ICAI has been vocal on the European stage in its opposition to CCCTB. Rather than simplifying European taxation by using one tax system, it is further complicating European taxation by introducing another system in addition to the existing 27. How will this improve the competitiveness of the European Union?