Irish Finance Minister Michael Noonan said, that the government was exploring the details of the “very complex” proposal of the European Commission for the common consolidated corporate tax base.
Noonan made the comments during his address to the Economic and Financial Committee on EU Affairs. He said: “This is a very difficult proposition. Each member state currently applies different rules on how tax revenue, which allowed deductions, credits issued and so on. Then we explore the details of the offer with other state parties.”
25 October the European Commission published its latest proposals. It intends to initially introduce harmonized rules for the calculation of the tax base in all Member State. After that, tax revenues will be collected and distributed among the staff member at the approach of an apportionment of the form under which all proceeds will be distributed on the basis of factors such as the level of turnover, sales and employment.
Noonan emphasized the Ireland’s active role in the “global work to make the international system of corporation tax.” He referenced on the participation of the government on the erosion OECD tax base, about project output from the income tax, the directive on fight against tax avoidance of the EU and about realization of reporting from country to country.
“Ireland is a strong supporter of tax transparency and administrative cooperation, as we see, they play a key role in solving global problems of tax evasion and aggressive tax planning,” said Noonan.
Noonan also took the opportunity to reiterate the position of the government on putting the EU court on the application of Irish taxation Apple. He said: “The Government fundamentally disagrees with the analysis of the European Commission and a decision has not left the government no choice, except how to make an appeal to the European courts.”
Noonan confirmed that the Irish government will appeal 9 October.