04/05/2011

Dáil Probes EU Plans For Common Tax System

An interim Dáil Committee will meet with officials from the Department of Finance today, to consider whether a new EU proposal for a consolidated system of calculating the tax base of businesses operating in the EU complies with the principle of subsidiarity.

The meeting will take place at 2.30pm in Leinster House.

The Common Consolidated Corporate Tax Base (CCCTB) proposal aims to reduce the administrative burden, compliance costs and legal uncertainties that businesses in the EU currently face in complying with 27 different systems for determining their taxable profits.

Under the plans, a “one stop shop” system would be established for companies to file their tax returns and would enable them to consolidate all their profits across the EU. It would also mean that the companies in the EU would be able to opt for a common system for calculating their tax rate or stick with the different national systems. Corporate tax rates in the each EU country would not change.

Committee Chairman, Charles Flanagan TD said: “These CCCTB plans could have serious implications for the way businesses across the EU manage their tax affairs. We need to make certain that any proposed changes at EU level will not negatively impact on Ireland.

He continued: “Although the CCCTB does not propose to alter member States’ individual corporate tax rates it does plan to streamline the system for calculating the tax base of businesses in the EU. This Committee intends to investigate whether the proposal complies with the principle of subsidiarity. The Dáil is obliged to give a response to the EU on the plans later this month and the Committee deliberations will inform this process.”

(BMcN/GK)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

22 March 2013
Budget R&D Tax Incentives Welcomed
Invest Northern Ireland has welcomed the R&D measures announced by the Chancellor George Osborne as part of the Budget statement. Improvements to the R&D tax credit system and the new Patent Box regime are part of wider government measures to encourage investment in R&D and help innovative businesses to grow.
01 March 2006
Employers reminded to stop paying Working Tax Credit
HM Revenue & Customs (HMRC) have reminded employers that they must stop paying Working Tax Credit via their payroll by the end of this month. Since its introduction in April 2003, Working Tax Credit has been paid via employers to supplement the wages of people on low incomes.
04 June 2004
Businesses welcome R&D Tax Credit guideline clarification
Business has welcomed clarified guidelines on research and development (R&D) tax credits, but there is still room for improvement if confidence in the process is to remain, says PricewaterhouseCoopers (PwC).
20 March 2020
Govt Support Grants To Ease Cash Flow Pressures
Grants of £10,000 and £25,000 have been made available to ease the cash flow pressures on eligible small businesses. The Northern Ireland Executive announced the schemes as it steps up measures to protect local firms impacted by coronavirus.
18 March 2020
Three Month Rates Holiday For NI Firms
The Department of Finance has implemented a three month rates holiday to assist local firms in managing the impact of the Covid-19 outbreak. Following the Chancellor's announcement on Tuesday, Finance Minister Conor Murphy said businesses will pay no rates bills for the next three months, saving a total of £100 million.