ICAI Comments On Pan-European Tax System Plans

by Carla Johnson, Investors Offshore.com, London

29 November 2007

The Institute of Chartered Accountants in Ireland (ICAI) on Wednesday launched a report on EU plans for a pan-European Tax system for companies.

The ICAI report, entitled 'Companies - A Harmonised Tax System for Europe?' provides a step by step guide to the EU plans for a Consolidated Corporate Tax Base or CCCTB, based on EU Commission documents.

Following its detailed analysis, ICAI has concluded that CCCTB will only result in higher administration costs for Irish business, and lower tax revenues for the Government.

According to ICAI Tax Director Brian Keegan:

"This new European Tax could ensure that the bigger European countries with the largest markets and the strongest industrial base will get the lion's share of tax paid by companies in Europe. The purpose of our new report is to foster a proper and informed debate on these far-reaching plans."

A CCCTB could also mean less control over taxes for the Irish Government, the report argued.

"Next week, our Minister for Finance will set out his tax plans in the Budget. If CCCTB were to become a reality, the Minister would have little control in the future over Corporation Tax which last year accounted for 15% of all taxes." observed Mr Keegan.

ICAI is advocating that all companies and business interest groups should familiarise themselves with the CCCTB proposals, and make their views known to politicians and MEPs.

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