Paschal Donohoe, the Minister of Finance of Ireland, has made it clear that the Irish government will not join the European Union initiative aimed at harmonization of tax regimes of the EU countries.
It should be recalled that the European Union is trying to stimulate its members to define a common consolidated tax base, value added tax rates same for all, joint taxation rules for digital industry, a unified tax rate for financial transactions, etc.
Not all EU Member States agree on these conditions, considering them as harming the national interests.
Thus, Paschal Donohoe in his interview on RTE channel said that the Irish government would not support decisions that would undermine the country’s independence. Ireland will decide all important issues for the citizens on its own.
Seamus Coffey, the head of the Irish Advisory Board on Taxation and Budgeting, is also opposite to the idea of a common consolidated tax base. In his opinion, the policy of the common consolidated tax base will change the conditions for the distribution of tax rights in the country. Today, the corporate tax share in the Irish budget is close to the maximum fixed value. The introduction of a common consolidated tax base will have a negative impact on the corporate sector and will reduce the investment attractiveness of the state.