Speaking before a parliamentary committee earlier this month, Mark Redmond, Chief Executive of the Irish Taxation Institute welcomed the Irish government's recent re-affirmation of Ireland's 12.5% corporate tax rate, but he also pointed out that the Lisbon Treaty would have allowed Ireland to retain its veto on tax issues, and the treaty would not have forced harmonized EU tax rates on the country.

“Taxation is one of the key issues of concern to our people when it comes to our membership of the European Union and in particular the terms of the Lisbon Treaty. In the course of the debate on the Lisbon Treaty major concerns were raised about our ability to maintain control over our corporation tax rate should the Treaty be ratified. This issue was linked by some in the debate to the separate matter of EU proposals to harmonise the corporate tax base throughout the EU – known as CCCTB. At this point I would like to stress that these two issues are not directly linked – the Lisbon Treaty does not require Ireland to participate in the CCCTB and it does not facilitate the imposition of the CCCTB upon Ireland," Redmond told the committee, continuing:

“A number of parties who have already appeared before this Sub-Committee have emphasised the absolute necessity for Ireland to maintain a corporation tax policy that is underpinned by certainty and competitiveness. They identified this as one of the key factors, along with others such as infrastructure and investment in education, in attracting inward investment. Any threat to our 12.5% corporate tax rate will give rise to considerable uncertainty in the minds of those currently investing or considering investing in Ireland, thereby damaging the competitiveness of our economy and our capacity to sustain and create employment. The political consensus in Ireland on this point and the affirmation of the continuation of the 12.5% rate in the October Budget statement are particularly important. They are important because they provide certainty regarding Ireland’s corporation tax policy to those who have created employment here and those who may consider investing to create new employment here. The provisions of the Lisbon Treaty provide no threat to this certainty."

“As I have stated, for the key reasons of maintaining certainty and competitiveness, Ireland must maintain control over our corporation tax rate and structure. It is important to emphasise that we operate a very transparent corporation tax structure in Ireland – we have a very clear and transparent system with no hidden deductions or adjustments. We are fortunate to have a very advanced and rigorous Revenue Authority who underpin our self assessment system with appropriate checks and balances to ensure that those availing of our 12.5% corporation tax rate bring the required substance and presence to their operations in Ireland. The Committee has already heard detailed comment on these matters from representatives of the multinational sector and from IDA Ireland."

Redmond concluded: “Finally, in the current difficult economic circumstances we collectively face, it is even more vital that we maintain control of our taxation rates and structures so that we can act swiftly and without unnecessary hindrance in managing our public finances. It is also vital that we maintain our influence and credibility at EU level. The committee has already heard in some detail the scale of the positive contribution to our social and economic well-being arising from our EU membership. The committee has also heard about the apparent damage to Ireland’s influence and standing at the EU table since the rejection of the Lisbon Treaty. It is in our collective interests to take whatever action we can to repair this damage.”