It was reported in mid December (after the EU Commission CCCTB Working Group Open Meeting on 10 and 11 December) that the EU Commission has removed the Common Consolidated Corporate Tax Base from the Commission's strategic priorities for 2008.

The suggestion is that, given Ireland's antipathy towards the CCCTB project, it might be useful to keep it off any debates on the role of the EU in the context of next year's referendum on the EU Reform Treaty. While this may be the case, in ICAI's view some points remain valid, regardless.

Firstly, the Reform Treaty does not address issues of tax sovereignty and CCCTB. The Reform Treaty issues are separate and distinct, and a rejection of the Reform Treaty does not mean a rejection of CCCTB, no more than the adoption of the Reform Treaty means an acceptance of CCCTB.

Secondly, any EU wide tax measures are notoriously slow in gestation, and have in the past taken 20 years or more to come to fruition. In the overall scheme of things, whether or not a tax item features as a priority on the EU agenda in any given year may not necessarily impede its march forward.

Thirdly, EU papers were published recently which for the first time detail options for the apportionment formula under CCCTB, the mechanism by which countries will share taxable group company profits. Further information is provided in Section 1.27. There is a strong leaning towards the lion's share being allocated to countries with the largest markets and capital infrastructure. This is a prize which surely many EU Member States will be willing to pursue with stamina.

It is therefore very important that Irish business continues to distinguish the CCCTB project within the wider EU debate on the forthcoming Referendum. ICAI's detailed discussion document is included in this issue of tax.point.