Irish Accounting Profession Urges Yes On Lisbon

by Jason Gorringe, Tax-News.com, London

07 September 2009

The Irish Consultative Committee of Accountancy Bodies (CCAB-I) has called for a Yes vote in the forthcoming referendum on the Lisbon Treaty.

CCAB-I is comprised of the State’s largest accountancy bodies – Chartered Accountants Ireland (formerly the Institute of Chartered Accountants in Ireland), the Association of Chartered Certified Accountants, the Institute of Certified Public Accountants in Ireland and the Chartered Institute of Management Accountants.

Commenting on behalf of the accountancy profession, CCAB-I Chairman, Tom Fitzpatrick explained that:

“The general business case for a Yes vote on this occasion has already been made. We are an open economy that exports 80% of our output, over 60% to the European Union. Our EU and euro membership has been a rare source of stability for Ireland’s business community in what has been a difficult year.”

“The accountancy profession has a particular interest in Ireland being represented strongly in Europe. The parameters governing company law, financial reporting and our audit regulatory systems are all substantially set in Europe. The application of International Financial Reporting Standards in Ireland is governed by EU decisions, as will, in the near future, the application across the continent of International Standards on Auditing.”

“Ireland has been successful in the past in influencing the outcome of discussions on these issues and with a strong Yes vote, CCAB-I believes we can continue to do that,” he concluded.

President of the Irish Taxation Institute, Jim Ryan, has also urged support for the treaty in a statement in late July, underscoring that the Lisbon treaty "does not affect Ireland’s ability to set our own tax policy”, and adding that:

“The re-negotiated Treaty includes a specific guarantee on taxation. This new guarantee is crystal clear in stating that nothing in the Lisbon Treaty makes any change to the EU’s competence with respect to taxation and, in particular, the right of Member States to set their own corporation tax rates. This position is further confirmed by decisions of the European Court of Justice. A subsequent Treaty revision would be required to alter this position, which would undoubtedly require approval of the electorate in a referendum.”

“During last year’s Lisbon referendum, there was much controversy and confusion in relation to Ireland’s tax veto, and the Irish Taxation Institute carried out detailed analysis of the Treaty in respect of its impact on taxation which determined that the veto was unaffected by the Treaty. The specific guarantees obtained by the Irish government in advance of the second referendum further consolidate that position. In relation to taxation, Ireland has nothing to fear from the Lisbon Treaty,” Ryan stressed.

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