Ireland must reject EU digital tax proposals – McGrath

21 March 2018
By Mary Bermingham

Fianna Fáil Spokesperson on Finance Michael McGrath has said Ireland must reject the European Commission’s digital taxation proposals published today.

Deputy McGrath commented, “The proposals published by the European Commission today encroach directly into an area – corporate tax – that is a national competence under EU law. It is the latest in a series of efforts by the Commission and some of the larger member states to get control over corporate tax policy across the European Union and to remove the ability of member states to compete on their corporate tax offering.

Michael McGrath TD

“The proposal that this 3% turnover tax would be allocated to member states based on how many users of the company’s digital service each country has is obviously not going to play out well for Ireland. It is a direct threat to our corporate tax base and our inward investment policy.

“Alongside the digital tax proposals, the Commission is continuing to promote the Common Consolidated Corporate Tax Base (CCCTB) proposals which would be also very damaging to Ireland’s economic interests. The common theme running through both the CCCTB and digital tax proposals is a desire to wrestle from small member states like Ireland the competitive advantage we have through our relatively low corporate tax rate.

“All multinationals – including big internet companies – should pay their fair share of tax. Changes are necessary but they need to be agreed on a global basis. Ireland should continue to work with the OECD on reforming the system of international taxation, closing loopholes and ensuring greater transparency.

“The Irish government should make it clear it is prepared to use its veto to block the latest attempt from the Commission to take control of corporate tax policy across Europe,” concluded McGrath.

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