Ibec, the group that represents Irish business, today outlined their economic and social vision for Europe at an event hosted by the European Economic and Social Committee (EESC) in Dublin to discuss the European Commission White Paper on the Future of Europe.
Speaking during the event Danny McCoy, CEO of Ibec, stated: "The Irish corporate tax regime remains a key driver of our national prosperity, enabling us to compete for mobile investment and provide certainty to the business community. It is important that future EU policies support Ireland's role of continuing to attract FDI into Europe. Implementation of the OECD Base Erosion and Profit Shifting (BEPS) process, which is a singular achievement in multilateral tax reform, is the best way to do this."
“Today’s debate in Dublin regarding the future of Europe coincides with Ireland becoming a co-signatory (along with over 70 other countries) in Paris to the multilateral convention on the OECD’s BEPS process. Ibec welcomes this key milestone in what had been the most ambitious change to international tax in almost a century. BEPS has helped align global corporate tax practices with the substance of business activity based in Ireland. It has seen billions of additional taxes flow to the Irish exchequer and has improved the attractiveness of our business model and corporate tax regime for winning jobs and commerce internationally. The outcome of BEPS has been a recognition of the substance of Ireland’s business model over the spin.
“The agreement signed in Paris today is in stark contrast to the misguided efforts by the European Commission to re-introduce a Common Consolidated Corporate Tax Base (CCCTB), a proposal which has already been rejected by several EU states on numerous occasions. The CCCTB would result in an unjustified transfer of taxing rights from small open economies to large closed ones. Ibec has estimated that this would cost Ireland over €4 billion per annum in tax revenues. In an international context, unilateral moves at EU level may undermine the significant progress made under the BEPS process. It is clear that elements of CCCTB run contra to both the spirit and law of international efforts to align profit with economic substance. Therefore we need to be careful in how we move forward at European level if we are to achieve the full potential of our individual economies and our shared union. Most, if not all, of the aims of CCCTB can be achieved by full implementation of the BEPS process.”