Kovács corporate tax proposals are bad for business in Ireland – banking sector to vehemently oppose

The Irish Banking Federation (IBF) is vehemently opposed to any attempts to introduce a Common Consolidated Corporate Tax Base (CCCTB), as this would prove very damaging to business in Ireland and to the interests of the wider economy. IBF regards the latest proposals published today by the EU Commissioner for Taxation and Customs Union, László Kovács, as deficient in their own right and as a gateway to a common corporate tax that would be very damaging for Ireland. IBF is opposed to the CCCTB proposals for the following reasons.
Competitiveness: These proposals will seriously undermine Ireland’s competitiveness. Moreover, the Commissioner has not produced any analysis in support of his claim that they will enhance European competitiveness.
Inflexibility: Every Member State annually amends its tax system to reflect its policy priorities. This flexibility would be lost under the Commissioner’s proposals and, in effect, will lead to a diminution in Ireland’s sovereignty in respect of tax matters.
Uncertainty: The introduction of a CCCTB will give rise to greater uncertainty for business in any Member State that operates such a system. Just as the introduction in the past of new taxation legislation across Europe has given rise to major (and costly) interpretation issues, it can be expected that CCCTB would have a similar impact.

IBF Chief Executive, Pat Farrell, stated today: “As an open, trading economy operating in a very challenging global environment, it is imperative that we maintain what competitive advantages we have and that we continue to sharpen our competitiveness at every opportunity. This is as true for financial services as it is for any other sector of our economy. We strongly oppose the CCCTB proposals because they are in themselves very deficient and because they are the gateway to a common EU corporate tax that will further undermine Ireland’s competitiveness. That would spell bad news on the jobs front, for our standard of living and for the economic and social well being of people generally. This is why IBF is now working with a wide range of other parties here to oppose these proposals.”

Note to Journalists: Irish Banking Federation (IBF) is the leading representative body for the banking and financial services sector in Ireland, representing over 60 member institutions, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Further Information: Felix O’Regan, Head of PR and Public Affairs, IBF, tel. 6715311, 087 6481644