In a statement released in May, Chartered Accountants Ireland noted the EU Commission Communication on Reinforcing Economic Policy Coordination. In our view, there is nothing in the Communication which could prejudice the 12.5% Corporation Tax rate in Ireland. This statement from the Institute received wide coverage in the press.

The Institute's Director of Taxation Brian Keegan said: “Chartered Accountants Ireland monitors on an ongoing basis developments in EU tax policy and strategy to assess its potential impact on Ireland. In fact, we were in bi-lateral discussions in Brussels with the EU Tax Commissioner Mr Algirdas Šemeta concerning Corporation Tax Policy. Commissioner Šemeta was very clear that the corporation tax rate is entirely an issue for national governments.”

EU Member States set their own tax rates. There is no change to this, either by way of the Commission Communication or by way of other EU policy documents and recommendations, such as the Monti report published last month. That is not to say that we must not be vigilant and sensitive to Irish interests as EU policy evolves.