In a statement to Dáil Eireann on recent developments in the Eurozone, Finance Minister Michael Noonan confirmed that the government's position on the Common Consolidated Corporate Tax Base has not changed. CCCTB is a draft EU Directive designed to redistribute corporation tax revenues among EU Member States where a multinational group has a presence. More generally there are to be structured discussions on tax policy issues under the Euro Plus pact, which is a separate arrangement between Eurozone Member States. Along with a further commitment to participate in discussions on the EU Commissioners proposal for a Financial Transactions Tax, we can expect a lot of talking to be done.

The Irish government's position on CCCTB has consistently been a willingness to engage with the Commission and other Member States, provided the principle of unanimity on taxation matters is fully respected. “We agreed to engage in what I expect to be a very complex debate on the Commission's CCCTB corporate tax base proposal, and more generally in the structured discussions on tax policy issues provided for within the framework of the Euro Plus pact”.

It's a well-founded expectation of complexity on the Minister's part – the CCCTB proposals have been around in some shape or form for over ten years, eventually morphing in March of this year into a Directive which possibly raises more questions than it answers. The reference to the Euro Plus pact could involve us in discussions on “CCCTB Lite”, a version of the Common Consolidated Corporate Tax Base but without the Consolidation. CCCTB Lite removes the most politically fraught aspect of CCCTB (tax redistribution between Member States) but leaves the most technically fraught aspect (arriving at taxable profit) in play.

Minister Noonan also stated that Ireland would participate in discussions on the EU Commissioners proposal for a Financial Transactions Tax.

Last month the president of the European Commis-ion presented a proposal for the introduction of a financial transaction tax in the 27 Member States of the European Union to the European Parliament (further details available in the bulletin “EU Tax on Financial Transactions” on page 20). The proposed tax would be levied on transactions between financial institutions when at least one party to the transaction is located in the EU. According to the statement by Minister Noonan before the Dail, “any proposal must not have the effect of encouraging relocation of activity or damaging the EU's competitiveness in financial services and that “the EU and other international groupings, such as the IMF and G20, should move in tandem to avoid the danger of financial sector business gravitating to jurisdictions where taxes are not levied on financial transactions”.

The full statement by the Minister for Finance is available at http://www.finance.gov.ie/viewdoc.asp?DocID=7000