The Government is facing a new threat to its corporate tax regime as Germany and France push for the acceleration of moves to create a pan-European business tax system.
The two powers [Germany and France] say in a private submission to European Council president Herman Van Rompuy that urgent measures are required to secure economic growth.
In a paper seen by The Irish Times , they highlight “tax co-ordination” as being among the policies required to bring this about. These include a quickening of moves to create a common consolidated corporate tax base (CCCTB), an initiative once dismissed by Taoiseach Enda Kenny as tax harmonisation by the “back door”.
The CCCTB would not harmonise tax rates but it would create a pan-European tax system for firms operating in more than one country.