Friday, 20 April 2012

MEPs approve tax base plan

From the Irish Times
MEPs meeting in Strasbourg have today backed a plan to introduce a compulsory pan-EU business tax system, a move that will likely be met with concern in Ireland.
The introduction of a common consolidated corporate tax base (CCCTB) would allow companies to submit one centralised tax return across all EU countries in which they operate. Their taxable profits would then be split between the member states they operate in according to the size of their business in those countries, which would retain the right to set their own rate of tax.
Supporters of the proposal claim it would reduce costs and administrative burdens for businesses operating across a number of countries.
However, the initiative was once dismissed by Taoiseach Enda Kenny as tax harmonisation by the “back door” amid concerns that it would make it more difficult for multinationals to take advantage of Ireland's low 12.5 per cent corporation tax.
Despite this, the Government has agreed to constructively engage in debate on the legislation.

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