France and Commission to push for tax harmonisation?

pietercleppe

France and Commission to push for tax harmonisation?

The Irish Independent reports that the French Department of Finance has said that France will make harmonising business taxes a main priority for its EU presidency and that the Commission is preparing a proposal. It is noted, "The Irish Independent has seen copies of the agenda prepared for the July 2 meeting of the European Commission's 'Competitiveness Council'. It shows the plans have now developed to the point that Laszlo Kovacs, the EU Commissioner for Taxation and Customs Union, and the main driver of the tax harmonisation plans, was due to give a presentation on the subject to the Council." Turlough O'Sullivan, Director General of Irish business lobby group IBEC is quoted as saying: "I am absolutely convinced this is a Trojan horse to bring in common tax rates."

http://www.independent.ie/national-news/fears-as-french-to-push-for-taxrate-harmony-1401314.html

Fears as French to push for tax-rate harmony

• National News Home

By Tom McEnaney Business Editor
Saturday June 07 2008


Harmonisation of business taxes will be the number one priority of the French Presidency of the European Commission, which begins next month, officials from the French Department of Finance told business leaders.
A meeting of Medef, the largest French business lobby group, was told that Nicolas Sarkozy's government plans to bring forward concrete measures aimed at harmonising the European corporate tax base and, by extension, all tax rates, as early as September.

This would seem to undermine assurances given by Jose Barosso, the president of the European Commission, on a visit to Ireland last April when he said that Ireland's tax rates would not be threatened.

There is also evidence that the European Commission may be deliberately hiding plans to harmonise corporate tax rates until after Ireland goes to the polls on the Lisbon Treaty.

The Commission has consistently said plans to harmonise rates, by bringing in a common tax base for corporate taxes, are not very well advanced and will not threaten Ireland's low corporate tax regime, which is one of our key advantages in attracting inward investment.

The plans will not be affected by the Lisbon Treaty, which, if passed, will allow us retain our veto on tax matters.

This has not prevented European tax harmonisation becoming one of the principal themes of the campaign.

In particular it has been used by 'No' campaigners who have attempted to link the two issues, although many groups, including Irish business lobby groups, have stressed the two are unrelated.

The Irish Independent has seen copies of the agenda prepared for the July 2 meeting of the European Commission's 'Competitiveness Council'. It shows the plans have now developed to the point that Laszlo Kovacs, the EU Commissioner for Taxation and Customs Union, and the main driver of the tax harmonisation plans, was due to give a presentation on the subject to the Council.

A Commission spokesman confirmed that the item has been removed from the latest edition of the agenda. One source said it was specifically taken off because of sensitivities over the Irish poll on the treaty.

A spokesman for the Irish Government said: "If the Commission decides to bring forward a proposal to Council, then we will study it.
Oppose

"The Government has made it crystal clear that corporation tax is an area of national competence and sovereignty and we will, working together with many other like-minded member states, vigorously oppose any proposal that seeks to change that."

A spokesman for Mr Barroso played down the role of the Commission in bringing forward the tax harmonisation plans.

"At the request of the member states the Commission is analysing the tax [harmonisation] issue. At this point there has been no conclusion to that analysis and there will be no decision any time soon."

Turlough O'Sullivan, director general of business lobby group IBEC, said: "I am absolutely convinced this is a Trojan horse to bring in common tax rates."
Ireland can veto the proposals, whether or not the Lisbon Treaty is passed by next Thursday's referendum. However, this would not stop some countries using the "enhanced cooperation" mechanism of the EU to club together to harmonise their own tax bases.

Critics of the plan say Ireland would be then be pressurised to join this group.
- Tom McEnaney Business Editor

pietercleppe

pietercleppe wrote: »

France and Commission to push for tax harmonisation?

The Irish Independent reports that the French Department of Finance has said that France will make harmonising business taxes a main priority for its EU presidency and that the Commission is preparing a proposal. It is noted, "The Irish Independent has seen copies of the agenda prepared for the July 2 meeting of the European Commission's 'Competitiveness Council'. It shows the plans have now developed to the point that Laszlo Kovacs, the EU Commissioner for Taxation and Customs Union, and the main driver of the tax harmonisation plans, was due to give a presentation on the subject to the Council." Turlough O'Sullivan, Director General of Irish business lobby group IBEC is quoted as saying: "I am absolutely convinced this is a Trojan horse to bring in common tax rates."

http://www.independent.ie/national-news/fears-as-french-to-push-for-taxrate-harmony-1401314.html

Fears as French to push for tax-rate harmony

• National News Home

By Tom McEnaney Business Editor
Saturday June 07 2008


Harmonisation of business taxes will be the number one priority of the French Presidency of the European Commission, which begins next month, officials from the French Department of Finance told business leaders.
A meeting of Medef, the largest French business lobby group, was told that Nicolas Sarkozy's government plans to bring forward concrete measures aimed at harmonising the European corporate tax base and, by extension, all tax rates, as early as September.

This would seem to undermine assurances given by Jose Barosso, the president of the European Commission, on a visit to Ireland last April when he said that Ireland's tax rates would not be threatened.

There is also evidence that the European Commission may be deliberately hiding plans to harmonise corporate tax rates until after Ireland goes to the polls on the Lisbon Treaty.

The Commission has consistently said plans to harmonise rates, by bringing in a common tax base for corporate taxes, are not very well advanced and will not threaten Ireland's low corporate tax regime, which is one of our key advantages in attracting inward investment.

The plans will not be affected by the Lisbon Treaty, which, if passed, will allow us retain our veto on tax matters.

This has not prevented European tax harmonisation becoming one of the principal themes of the campaign.

In particular it has been used by 'No' campaigners who have attempted to link the two issues, although many groups, including Irish business lobby groups, have stressed the two are unrelated.

The Irish Independent has seen copies of the agenda prepared for the July 2 meeting of the European Commission's 'Competitiveness Council'. It shows the plans have now developed to the point that Laszlo Kovacs, the EU Commissioner for Taxation and Customs Union, and the main driver of the tax harmonisation plans, was due to give a presentation on the subject to the Council.

A Commission spokesman confirmed that the item has been removed from the latest edition of the agenda. One source said it was specifically taken off because of sensitivities over the Irish poll on the treaty.

A spokesman for the Irish Government said: "If the Commission decides to bring forward a proposal to Council, then we will study it.
Oppose

"The Government has made it crystal clear that corporation tax is an area of national competence and sovereignty and we will, working together with many other like-minded member states, vigorously oppose any proposal that seeks to change that."

A spokesman for Mr Barroso played down the role of the Commission in bringing forward the tax harmonisation plans.

"At the request of the member states the Commission is analysing the tax [harmonisation] issue. At this point there has been no conclusion to that analysis and there will be no decision any time soon."

Turlough O'Sullivan, director general of business lobby group IBEC, said: "I am absolutely convinced this is a Trojan horse to bring in common tax rates."
Ireland can veto the proposals, whether or not the Lisbon Treaty is passed by next Thursday's referendum. However, this would not stop some countries using the "enhanced cooperation" mechanism of the EU to club together to harmonise their own tax bases.

Critics of the plan say Ireland would be then be pressurised to join this group.
- Tom McEnaney Business Editor

Pointless waste of ink as commission proposals on tax are subject to a council of ministers vote.
Turkey's don't vote for Christmas and neither would Ireland vote to move 1000's of jobs to other parts of Europe.

is_that_so

You should be aware that the Irish Independent despite occasional lapses in favour of quality is more akin to a tabloid. What France wants does not mean that it is something they can get, Veto is retained over taxation. It is a typical French attempt to blame everything for their own structural deficiencies. You should also recall that many six month presidencies are no more than "house minding", full of good intention but ultimately victims of ""vaulting ambition".

Sir Digby Chicken Caesar

The plans will not be affected by the Lisbon Treaty, which, if passed, will allow us retain our veto on tax matters.

interesting that you didn't see fit to put that in bold

molloyjh

The French want a lot of things. Luckily though both before and after Lisbon (if it is passed) taxation policies will still be subject to unanimous decision, which means we can veto it (as can the UK ad Slovenia). So it really doesn't matter what the French want in that regard.

sink

I have no doubt that Sarko is pushing his tax agenda, he is alos pushing for a minimum 6% of gdp spent on defence and a Mediteranian union to rival the EU. Frankly all of these suggestions are not viable, they are lunatic rantings by a schoolboy and the presidency will give him more voice to push them, all the more reason we should vote to ditch the rotating presidency.

The plans will not be affected by the Lisbon Treaty, which, if passed, will allow us retain our veto on tax matters.

Not only that but as direct taxation is not one of the competences given to the EU, we would require another referendum in this country.