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CORPORATION TAX

Ireland’s low corporation tax advantage could be short-lived, writes The Sunday Tribune.

Brussels lobbyist Conor Foley warns that the European Commission have renewed plans to harmonise corporation tax rates across the union.The 2010 Working Programme of the European Commission, published over Easter, outlines plans to “make tax rules simpler, reduce compliance costs and remove tax obstacles which companies currently suffer when they operate cross-border.”

Foley believes this signals the EU’s willingness to push ahead with its Consolidated Corporation Tax Base (CCTB) programme, possibly signalling an end to Ireland’s low 12.5 per cent tax regime.

“Those countries campaigning on behalf of the CCTB are now far less concerned about the Irish veto and there is a real danger than the proposal could get through,” said Foley.

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