DUBLIN: The Republic’s corporate tax take faces threats from Donald Trump to the west and Pierre Moscovici to the east, with the latter in Dublin this week on a charm offensive as business leaders came together to thrash out the finer points of the State’s tax practices. Moscovici, the European Union’s economic affairs and taxation commissioner, was at the Westin Hotel to address The Irish Times Corporate Tax Summit before making the short journey up Kildare Street to appear before the Oireachtas finance committee. His main topic of discussion was the EU’s proposed common consolidated corporate tax base (CCCTB). This commission proposal would allow companies to submit one centralised tax return across all EU countries in which they operate. Their taxable profits would be split between the member states they operate in, with states retaining the right to set their own tax rate. The Irish Government has strongly resisted the move, claiming it would sharply reduce corporate tax take.
Moscovici, for his part, rejected that assertion. “No, I think it does not reduce tax revenues here in Ireland,” he said. “The impact assessment showed a very slight impact [on corporate tax revenues] but did not take into account the positive effect for our common growth. This proposal is good for Ireland.” Noonan however was singing from a different hymn sheet. “Contrary to common perception, the EU plan would lead to lower receipts from corporate tax, not higher,” he said. Addressing the parliamentarians later on, Moscovici insisted the policy could not be introduced without the say-so of the Republic. “Ireland can be reassured that there won’t be a CCCTB if Ireland doesn’t want it,” he said. Furthermore, Moscovici said the European Commission was “open to compromise” on the matter. “This proposal is not take it or leave it,” he said. “It’s a proposal open to compromise. What I only want is that it can be discussed in good faith and goodwill.”
