MEPs attack Irish corporate tax rate

Sykk

A row has broken out in the European Parliament over Ireland's 12.5% corporate tax rate.
It has emerged that eight mostly French and German MEPs have issued a declaration attacking Ireland's corporate tax rate and calling for a minimum EU-wide corporate tax rate of 25%.
What has heightened the dispute is the fact that the eight MEPs are all co-ordinators for the different political groupings in the parliament and are, as such, representatives for those groupings on an influential parliamentary committee.
The declaration invites signatures from other MEPs and if it can gather the support of 350 MEPs, it then becomes the position of the European Parliament.
The statement claims that European taxpayers and citizens have been put at risk 'in order to stabilise a financial system which has been profiting from the exceptionally low Irish corporation tax rate of 12.5%...'
It goes on to suggest that Ireland's corporate tax rate is unfair and goes against the spirit of European solidarity, especially given the fact Ireland is receiving a bailout.
The declaration concludes: 'We urge the European Commission to advance on the dossier of a Common Consolidated Corporate Tax Base. We urge the European Commission, the Eurogroup and its members to ensure that the corporation tax rate will be increased to the average EU level of 25% in a spirit of solidarity.'
Irish MEPs are understood to be furious at the declaration given that, as co-ordinators on the Economic and Monetary Affairs Committee (ECON), they technically represent the same political groups of which Irish MEPs are members.
A spokesman for the influential ECON committee acknowledged the dispute, but insisted that the MEPs had issued the declaration in their personal capacity, and not as co-ordinators.
But this has been disputed by Fine Gael MEP Gay Mitchell.
It is understood Irish MEPs are to raise the matter with their own political groupings.
This morning the EU Commissioner for Taxation Algirdas Šemeta addressed the ECON committee to set out his work plan for 2011.
The European Commission is planning to propose a harmonisation of the corporate tax base. Known as the Common Consolidated Corporate Tax Base (CCCTB), it foresees a single set of rules to clarify in which of the 27 member states multinational companies and SMEs should have their profits declared for taxation purposes.
However, a spokeswoman for the Commission told RTÉ News that the Commission 'has absolutely no intention of introducing a minimum corporate tax rate of 25pc. It is not even in our competence under the European treaties to do so.'
Any Commission proposals concerning taxation, either the CCCTB or Corporate Tax, require unanimity, so Ireland retains a veto in this area.
The MEPs declaration was signed by the following: Jean-Paul Gauzes (EPP), Udo Bullmann (S&D), Sylvie Goulard (ALDE), Sven Giegold (Greens/EFA), Burkhard Balz (EPP), Leonardo Dominici (S&D), Wolf Klinz (ALDE) and Pascal Canfin (Greens/EFA).
Such a declaration is open to signatures for a three-month period. It appears unlikely the declaration would win the support of 350 MEPs, but it highlights the growing tensions over Ireland's corporate tax rate now that Ireland is receiving an EU bailout.

Okay I've been pretty much against these threads but I think this is a pretty big one. They, 8 MEPs (French and German) have demanded that the EU Wide-Corporate tax be raised to 25%.. Thats us... from 12.5% to 25%.

If they can get 350 members to sign it. It then becomes the position of the European parliament.. If that happens, we are actually finished.. There's absolutely no reason for any companies to come near this place with a barge pole.. Unlikely as it is.

Just the start of **** things to come, probably. Take to the streets to protest again, IMO!

Wazdakka

Ah Shíte..

Craebear

**** em. Lets leave the EU. If that fails, emigrate to Norway.

Donkey Oaty

Sykk wrote: »

If that happens, we are actually finished.

If it does, maybe we are.

On the positive side, so are they.

FF and proud

Ah sure tis a disgrace that is, sure there'll be no work here in a few years and the young peoples will be travellin out to America and Australia again. Shockin stuff this altogether.

gizmo

However, a spokeswoman for the Commission told RTÉ News that the Commission 'has absolutely no intention of introducing a minimum corporate tax rate of 25pc. It is not even in our competence under the European treaties to do so.'
Any Commission proposals concerning taxation, either the CCCTB or Corporate Tax, require unanimity, so Ireland retains a veto in this area.

Did you skip over that bit?

TheZohanS

We have a Veto on it, thankfully. Then again knowing our gutless, useless politicians they might not use that Veto.

mike65

Just talking about it on RTE radio, its a crock of BS. All 27 countries would have to vote to change the rate and UK/Dutch/Danes won't do that not to mention the likes of Latvia.

fuc k off greens in Germany and France.

Johnmb

Sykk wrote: »

If they can get 350 members to sign it. It then becomes the position of the European parliament.. If that happens, we are actually finished.. There's absolutely no reason for any companies to come near this place with a barge pole.. Unlikely as it is.

Just the start of **** things to come, probably. Take to the streets to protest again, IMO!

You don't seem to have a full understanding as to the workings, and powers, of the European Parliament. If they get the 350 signatures, and if it was to become the position of the European Parliament, then that would mean...... nothing. It would just be the position of the European Parliament. They have lots of positions on lots of things. They have no powers, or say, in the area of taxation. Even if all the governments agreed to remove the unanimous requirement for taxation, it still wouldn't be the Parliament that decides anything via qualified majority, it would be the national governments. Currently though, taxation requires unanimous decisions in order to be applied Europe wide, and that isn't going to happen any time soon, even if the Irish government wanted it to happen!

Saila

ask JHR to fix it for ye

Zebra3

mike65 wrote: »

fuc k off greens in Germany and France.

And the Greens in Ireland, you sell-out bastards.

whiskeyman

The politics forum is thataway...

epgc3fyqirnbsx

They can't touch our rate, that was specifically written into the treaties. It's all down to whether our politicians have the balls to tell them to eff off. If we lose that then we are truly screwed.

And I love the way these French and Germans seem to forget the fact that we are an island off the edge of Europe and being in such a peripheral location is a big disadvantage. We have to do something to attract business and investment. Nothing stopping them from lowering their own corporation tax anyway.

This is one issue that would have me on the streets

TheZohanS

Madilynn Colossal Prune wrote: »

They can't touch our rate, that was specifically written into the treaties. It's all down to whether our politicians have the balls to tell them to eff off. If we lose that then we are truly screwed.

And I love the way these French and Germans seem to forget the fact that we are an island off the edge of Europe and being in such a peripheral location is a big disadvantage. We have to do something to attract business and investment. Nothing stopping them from lowering their own corporation tax anyway.

This is one issue that would have me on the streets

Prostitution is not the answer Slasher.

Mrmoe

I say we propose a counter measure that forces them to lower their corporate tax rate to that of ours. Take that Germany.:P

FreudianSlippers

Craebear wrote: »

**** em. Lets leave the EU. If that fails, emigrate to Norway.

Yeah **** them and their immense support, money and understanding.

:rolleyes:

Sykk

gizmo wrote: »

Did you skip over that bit?

RTÉ News also said 3 weeks ago that "The government have absolutely no intention of applying for a bailout"..

Politicians lying... It couldn't be!?

123balltv

I betcha Germany and France will lower there's too
we will be left with nothing are low corporate tax is are bread and butter

FreudianSlippers

123balltv wrote: »

I betcha Germany and France will lower there's too
we will be left with nothing are low corporate tax is are bread and butter

Actually our "bread and butter" is more than that.

We are a Euro-spending, English-speaking country with relatively low tax rates and an educated work-force.

Germany lowering their tax rate, or even IMO us raising ours would not be the end of these companies in Ireland. Not to mention for those that leave there will be others to take their place.
The problem really is in rural areas, where whole towns are dependent on one employer - IMO this is ridiculous and towns that cannot exist without the one employer need to re-evaluate their position.

dlofnep

https://www.youtube.com/watch?v=IoLIU2NI66w

Piss of Germany.

ejmaztec

OisinT wrote: »

Actually our "bread and butter" is more than that.

We are a Euro-spending, English-speaking country with relatively low tax rates and an educated work-force.

Germany lowering their tax rate, or even IMO us raising ours would not be the end of these companies in Ireland. Not to mention for those that leave there will be others to take their place.
The problem really is in rural areas, where whole towns are dependent on one employer - IMO this is ridiculous and towns that cannot exist without the one employer need to re-evaluate their position.

Are it?

FreudianSlippers

ejmaztec wrote: »

Are it?

It are indeed!

K-9

CCTB is far more of a worry than the tax rate, it's what makes us a tax haven and really pisses of the Germans and French.

Still, it requires a veto too.

th3 s1aught3r

MEP's attack Irish corporate tax rate

How did they attack it exactly ? with tanks and bombs ?

Seriously though. I guess from a German perspective they are bailing us out and why should we be allowed an unfair advantage on them ?

epgc3fyqirnbsx

th3 s1aught3r wrote: »

MEP's attack Irish corporate tax rate

How did they attack it exactly ? with tanks and bombs ?

Seriously though. I guess from a German perspective they are bailing us out and why should we be allowed an unfair advantage on them ?

why is it unfair though?

dlofnep

th3 s1aught3r wrote: »

I guess from a German perspective they are bailing us out and why should we be allowed an unfair advantage on them ?

It's not unfair. It's competition. They are always welcome to lower their tax rates if they desire, but they won't dictate ours.

OutlawPete

It is the 'position of the European parliament' that when motor vehicles are bought in another EU country and tax is paid at point of sale, member countries don't then still charge an 'importation tax' and cleverly disguise it as a 'registration tax' - yet, we have VRT.

K-9

dlofnep wrote: »

It's not unfair. It's competition. They are always welcome to lower their tax rates if they desire, but they won't dictate ours.

Indeed.

It's very important to us as a tax haven, as our Financial Services industries are attracted to here because of it. That and lax regulation.

They should probably be more pissed off at the lack of regulation here, tbh.

Looking from afar, our demands regarding corporation tax and burning bond holders probably look hypocritical.

Mike 1972

Wasnt there originally a 10% tax rate which was increased -following pressure from Europe to 12.5 % ?

OisinT wrote: »

We are a Euro-spending, English-speaking country with relatively low tax rates and an educated work-force..

An educated work force (TM) who still unquestioningly swallow all the propaganda about how even a modest increase in corporate tax rates would herald the end of the world.

FreudianSlippers

Mike 1972 wrote: »

An educated work force (TM) who still swallow all the propaganda about how even a modest increase in corporate tax rates would herald the end of the world.

To be fair, it is the largely uneducated masses that are blindly jumping from one bandwagon to another.

opinion guy

Mrmoe wrote: »

I say we propose a counter measure that forces them to lower their corporate tax rate to that of ours. Take that Germany.:P

Eh no that would have pretty mucht he same effect as us raising ours.

What we should do is decrease our corporate taxrate to 10%