Friday, April 18, 2008

Barroso: EU countries could ignore Irish tax veto


Tax veto as useful as chocolate teapot

Chairman of pro-business Libertas, Declan Ganley said the assurances given by Barroso were worthless-
"It's laughable. In the week when we've now seen three separate reports confirming that the Government is in cahoots with the EU and other Governments to keep the truth of the Brussels Corporate Tax Plan from us until after we vote, we are now supposed to believe that the EU Commission President is going to "spontaneously" confirm that the Yes campaign is right?

"The truth is that while we may keep our tax veto, it will be about as much use as a chocolate teapot. No Government Minister or member of the Yes campaign can tell us what the European Courts will decide is or is not a "distortion of competition". Our tax rates at obvious risk given that the French will be empowered to take us to court over them."

Barroso's assurance on CCCTB while in Ireland.
Irish Independent April 18, 2008 - In a bid to quash Irish fears about a draft plan to harmonise the EU's corporate taxation base, EU Commission President Jose Manuel Barroso said the Reform Treaty will not change how member states deal with tax matters. He said nothing could be imposed on Ireland and that nothing can be agreed on taxation without the country's consent.

At Dublin Castle, Mr Barroso was asked by Naoise Nunn of Libertas to answer yes or no to the question of whether the ECJ could be asked to rule on whether Ireland's corporate tax rates "distort competition". Barroso refused to answer, saying the matter was 'too technical'. Barroso's answer on introducing CCCTB by enhanced cooperation in Sunday Business Post interview: is here.

Aked if the CCCTB proposal could go ahead under the procedures for enhanced cooperation?
Mr Barroso replied: "If there is enhanced cooperation for some member states, it is only to confirm the differentiation that Ireland wants. I don’t believe that scenario to be likely. Anyway, if some member states want to go ahead with some rules for their own, they have that right, this is true.
"By the way, this is exactly what Ireland wants. Ireland wants to have the right to have its own regime. -You cannot prevent others from wishing also to have a regime."-

Ergo, other states who wish can go ahead with plans for CCCTB under enhanced cooperation provisions of Lisbon.
This contradicts both Brendan Butler of IBEC: "The proposed CCCTB also needs all 27 members to sign up. If anyone says no, it has to be withdrawn." (Sunday Times 20/4/08 - Bus Sect. page 5)
And Dick Roche: "ANY CCCTB proposal would require unanimous agreement and there is no chance of that." (9/4/08)

Barroso's stance in Brussels

-The President of the European Commission, José Manuel Barroso, has expressed his full support for the strategy to harmonise the corporate tax base across the EU, which is currently being prepared by the Tax Commissioner, László Kovács. President Barroso also expressed hope that this strategy would be supported by the Member States.- Source
IBEC 01/01/2007

-Germany, France, Italy and Spain all favour CCCTB as does the President of the European Commission Jose Manuel Barroso.-
Irish Examiner May 2, 2007
The introduction of a CCCTB regime is EU Commission policy - see above post.