The European Commission initiates all EU laws.
The issue of the Corporation Tax rate and of a Common Consolidated Corporate Tax Base is absolutely crucial to Irish jobs. Having the power to maintain a low corporation tax rate is one of the linchpins of Irish economic success in recent years, and one of the reasons why Ireland has attracted such high levels of inward investment.
It is European Commission policy to introduce a Common Consolidated Corporate Tax Base.
Briefly, CCCTB is a uniform method or set of rules for corporate businesses to calculate what is taxable and to whom the tax is payable.
CCCTB also requires an allocation criteria or mechanism with which to ‘share out’ an enterprise’s consolidated tax base among the Member States.
The programme on CCCTB is well advanced and the Commission's legislative proposal will be made public in September 2008.
"The European Commission believes that the only systematic way to address the underlying tax obstacles which exist for companies operating in more than one Member State in the Internal Market is to provide companies with a consolidated corporate tax base for their EU-wide activities."
Background
This policy was established in 2001.
A public consultation was held in 2003.
In July 2004 a non-paper on the common tax base was presented by the Commission.
On 2 May 2007 the Commission adopted a Communication stating it was "committed to making rapid progress towards the abolition of corporate tax obstacles in the internal market".
The CCCTB plan is included the annual work programme of the European Commission for 2008 which was set out in October 2007, Page 7. “Work will also be continued in order to allow companies to choose an EU-wide tax base as set out in the 2008 Annual Policy Strategy. An impact assessment has been launched to examine the options and their implications.”
In September 2007 the Commission Services prepared a working paper on CCCTB.
The European Parliament is also fully in favour of introducting CCCTB. (cf page 3)
The EU Tax Commissioner has acknowledged wide support in the Parliament for the CCCTB.
