I rubbed my eyes is disbelief when I read that the EU Commissions is ploughing ahead with the introduction of a Common Consolidated Corporate Tax Base (CCCTB) for member states - well not really! I did curse though. The government, Fine Gael, Labour, IBEC, the ‘great and good’ swore blind during both Lisbon Treaty debates that an EU consolidated corporate tax base would never happen. So much for their word. It is happening now.
For those of us who campaigned against giving more powers to Europe there’s no surprise in this. When I raised this very issue at the EU Affairs Oireachtas Committee I was told - point blank – that I was wrong. When French Economics Minister Christine Lagarde publically stated in advance of the first Lisbon Treaty referendum that France would push for a CCCTB during its 2008 EU Presidency Eamon Gilmore described her comments as ‘arrogant and patronising’. Well, after all the hot air, the score stands Lagarde - 1, Gilmore – 0.
The truth, for those grown-up enough to calmly discuss the issue, is that the Commission has been working on the introduction of a CCCTB since 2001. The EU has to varying degrees already consolidated economic, social and monetary policies, so taxation is just a further step towards deeper integration of member states.
EU Tax Commissioner Algirdas Semeta, anticipating any resistance to his plans, has stated that if member states do not sign up a CCCTB he is prepared to invoke an enhanced co-operation procedure. In other words, the Commission will push this issue and no veto will stand in their way. The much-lauded Lisbon ‘guarantee’ on corporation tax won’t protect this state from the consequences of the CCTB.
Those advocating a common corporate tax base say it is not the rate that will be harmonised; but how the tax is calculated. A case of ‘you say tomatoes and I say tomatoes’ if you ask me.
The EU has Ireland over a barrel. The country is broke, billions are being lost to Anglo’s black hole and the ECB is the only taker when it comes to Irish bonds. The bigger member states are eager to finalise a CCCTB for Europe and Ireland cannot stop them.
Government, Fine Gael and Labour politicians were talking through their hats on this issue. The Lisbon jobs never materialized either – more on that from me soon.
