TaxAdministrationIrish minister warned tax plans at odds with EU

Irish minister warned tax plans at odds with EU

Ireland’s finance minister has been warned the government’s corporate tax and VAT plans are at odds with EU's agenda

Ireland’s newly installed finance minister Brian Lenihan has been briefed by
senior civil servants, warning his government’s proposals for a common
corporation tax base and the removal of the zero VAT rate on children’s clothes
and shoes are at odds with ‘EU’s agenda’.

Ireland’s corporation tax of 12.5% has been cited as the chief reason for the
country’s attraction as a tax base for many multinationals. Other governments
believe the rate distorts the EU market, The Times reports.

Irish officials expect the European commission to make a proposal on the
issue later this year when France takes over the EC presidency. A briefing memo
says Ireland is ‘also under pressure to change various elements of our tax code
in relation to which they argue we are infringing either treaty or directive
provisions’.

In addition to concern about corporation tax and VAT, the briefing memo
details other important issues such as declining tax revenues and ‘emerging
spending pressures’ in health, education and welfare.

Further reading:

Read
The Times story

Related Articles

Paul Morton, Tax Director, Office of Tax Simplification

Administration Paul Morton, Tax Director, Office of Tax Simplification

3m Emma Smith, Managing Editor
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

5m Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

5m Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

6m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

7m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

7m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

2y Fraser Simpson, Reporter