Chamber responds to latest tax proposals
Anna Scally, chair of the American Chamber of Commerce Tax Group responding to the letter published today from Presidents Sarkozy and Merkel to President Van Rompuy said;
“There is nothing particularly new in the proposals cited in today’s letter. The focus of Presidents Sarkozy and Merkel is on the common tax base and not on Ireland’s 12.5% corporate tax rate which Minister Noonan stated very clearly in yesterday’s budget was not for changing. Germany and France announced a number of months ago that they intend to move towards a harmonisation of their tax bases. Their intentions are clear and the suggestion in this letter is that they would like other Euro Zone countries to work towards a similar aim. However, absent a significant treaty change, which would require ratification in a referendum in Ireland, no changes can be introduced which would impact on our tax sovereignty.
“We expect the Taoiseach will be very clear in his negotiations on Friday of the imperative not to introduce measures which would negatively impact on our economic recovery or indeed on the ability of Europe to return to economic health”.