Brexit support no threat to corporate tax rate
The Government has denied Ireland has been asked to cave into EU corporate tax reforms in exchange for support from member states in the Brexit negotiations.
Tánaiste Simon Coveney flatly denied there was a “quid pro quo” yesterday or that the EU would only take the Irish position if Dublin agrees to drop its veto over tax reforms for the bloc.
“There is no linkage on that issue and the pressures on Ireland linked to Brexit where we have strong solidarity,” Mr Coveney told RTÉ radio.
The comments were made in the wake of international reports that some EU members want Ireland to drop opposition to a proposed digital tax across the bloc. Brexit solidarity cannot come for free, EU officials were quoted as insisting.
In June, EU president Jean-Claude Juncker, while supporting Ireland’s position on Brexit, also urged Dublin to drop its opposition to the digital tax plans. These are being driven by France.
Any new tax proposals, which would see technology firms face fresh levies, would need the support of all members. The Government says Ireland is one of many members opposed to the tax.
Nonetheless, senior government figures have been forced on the defensive over the issue, after reports on the tax.
Addressing the reports, Mr Coveney told RTÉ: “That is, in my view, verging on irresponsible journalism in my opinion.
I have spen t a lot of time, as the Taoiseach has, travelling around EU capitals ensuring that people understand why the Irish issues are so important on Brexit, why Ireland is so vulnerable and exposed to a potential bad outcome linked to Brexit. And why that outcome, if we don’t have our backstop in place, could potentially create frictions that undermines the peace process.
“Those issues are serious issues, this is not some kind of bargain whereby the EU shows solidarity with Ireland in exchange for putting some kind of pressure on Ireland on tax. I’m in the meetings with decision makers. There is no linkage between the two.”
The foreign affairs minister said EU chief Brexit negotiator Michel Barnier, Mr Juncker as well as EU council president Donald Tusk and EU leaders had all not made any linkage with the tax and Brexit.
“What happens on taxation is what has been happening on taxation for 20 years, whereby there are some EU countries that want to see a more common approach towards the setting of tax rates and taxation across the EU.
“But there is no linkage on that issue and the pressures on Ireland linked to Brexit where we have strong solidarity. It is not a quid pro quo,” stressed Mr Coveney.
Finance Minister Paschal Donohoe said Ireland’s tax policies would not be tweaked, saying:
“Our corporate tax policy will be fully protected over the coming period, the treaties of the EU recognise the ability of nation states to make decisions in terms of their rates. This is well understood by all member states and at all times in the Brexit negotiations the European Commission have offered full support to Ireland.”
EU Affairs Minister Helen McEntee equally denied there was bargaining around tax policies: “It has never been brought up. That is not the case.”
