EU Tax Competition Safe Under Incoming Taxation Commissioner

by Ulrika Lomas, Tax-News.com, Brussels

11 October 2004

Incoming European Commissioner for Taxation, Ingrida Udre, revealed last week that she supports the idea of EU company tax base harmonisation, although she rejected any move towards the fixing or harmonising of corporate tax rates.

"I would like to facilitate cross-border business by continuing the work for the creation of a consolidated tax base in the EU," Udre, a former speaker of the Latvian national assembly, told a confirmation hearing at the European Parliament.

Toeing the current Commission line on tax competition, Udre went on to add that allowing countries to set their own tax rates was good for European business.

"It is the responsibility of each country to choose their tax rate and fair tax competition is normal in the free market," she observed.

Describing herself as a “healthy” eurosceptic, Udre’s appointment to the post of Taxation Commissioner has raised many an eyebrow among EU parliamentarians, who have questioned her anti-EU political track record and failure to respond to allegations of corruption.

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