Heard of CCCTB? It is one of those economic issues which I believe I am one of the few people to regularly comment on; I wonder why? This relates to the woes that afflict Ireland but the concept applies to Northern Ireland Corporation Tax groupies;
“The second battle the Government is facing is with the EU technocrats who are advancing the concept of a Common Consolidated Corporate Tax Base (CCCTB) and this reached a new level with the commission’s adoption earlier this week of a proposal for an EU-wide system.
In essence, global principles would broadly hold that the profits of an enterprise can be attributed to where the risks, functions and activities are located. Therefore, companies which operate from here and sell into Europe pay their corporation tax in Ireland.
The common tax base proposal seeks to tear up these principles and, broadly speaking, allocate profits by reference to where sales are made, where its assets are located and where its people are based. Clearly the sales criteria will have the impact of taking tax revenues currently paid by such companies to Ireland and reallocating them to various other European countries.
The net impact is that one critical element of Ireland’s offering to FDI would be removed and clearly there is absolutely no upside for Ireland in supporting this and quite a bit of downside. The rate of tax becomes absolutely irrelevant under CCCTB since the profits to which such a rate would be applied have disappeared. Agreeing to CCCTB is not an option under any circumstances.”
Sorry, but CCCTB is on the Eurocrat agenda and will be the price Ireland pays for the bail-out cash. All those sirens demanding that Northern Ireland go down the route of lower CT need to beware the CCCTB trap. With a huge chunk torn out of the Block Grant, and CCCTB in place, our economy would be crushed. Funny how so few people want to talk about an issue at the centre of French/German ambitions.