Finance meeting to be dominated by corporate tax

Corporate tax will top today’s meeting of EU finance ministers in Brussels, as ministers discuss the latest state of play regarding the common consolidated corporate tax base (CCCTB) and cross-border tax rulings.

In particular, finance ministers are due to discuss the international aspects of the CCCTB, as they seek to integrate base erosion and profit shifting (BEPS) rules agreed by the OECD earlier this year. It is understood Ireland is opposed to any move to introduce BEPS-type rules at EU level beyond the OECD framework.

Cross-border taxation

Speaking in Brussels yesterday, Minister for Finance

Michael Noonan

said he was not concerned by the European Commission’s bid to relaunch the CCCTB, a proposal that would see cross-border companies use a single set of rules to calculate taxable EU profits.

“I heard commissioner Moscovici 12 months ago saying that he didn’t think CCCTB as designed had any chance of making progress and that he was withdrawing the proposal and he would come back with a more defined, limited proposal,” he said. “He said he would build a new proposal on those areas where there seemed to be consensus . . .”

The commission is due to present a mandatory CCCTB proposal next year, but it will defer the consolidation element – the most contentious – until a later date. But EU economics commissioner Pierre Moscovici reiterated last month consolidation would ultimately be incorporated.

Ministers are due to adopt conclusions on the future of the EU’s code of conduct on business taxation. While member states, including Ireland, have long been members of the Code of Conduct group, there have been calls to strengthen its remit. Today’s discussion comes as the 11 euro zone countries supporting a financial transactions tax (FTT) agreed the basis of a deal that will harmonise tax on financial transactions.

Meanwhile, Ireland's fourth post-programme surveillance mission featured at yesterday's euro-zone finance ministers meeting. Speaking after the meeting, eurogroup chairman Jeroen Dijsselbloem said the findings showed "very strong economic growth, continued improvement on the fiscal and financial side" – "Two years after the end of the programme, I think Ireland once again demonstrates that determined implementation . . . can turn an economy around to the benefit of citizens."