The introduction of a common consolidated corporate tax base throughout the European Union will have a damaging impact on Ireland’s ability to attract jobs, Fianna Fáil leader Micheál Martin has said.
He said the introduction of the new tax rate would “fundamentally and radically alter the basis upon which corporation taxes would be raised across the European Union”.
Speaking on RTÉ radio this morning, Mr Martin said his party is opposed to both an increase in Ireland's corporate tax rate and the introduction of a common consolidated corporate tax base across the EU. He said it was more than just an Irish issue but was one of “European competitiveness”.
“There’s a legitimate argument (irrespective of the member state argument), is Europe competitive in the new global order, is Europe developing policies in terms of inward investment and jobs that are realistic? I don’t think it is to be frank," he said.
“This isn’t a quid pro quo scenario, what we’re talking about here is sustainability and recoverability in terms of Ireland’s economic situation and its in everyone’s business that a sustainable programme is put in place”
Mr Martin said it is important the country has “instruments and mechanisms” to ensure economic growth and he added that tax is not an argument peculiar to Ireland but an issue for each member state
On the same programme, Mr Martin said his party’s bill on corporate donations does not provide for a complete ban because it would not be constitutional to do so.
The bill, which was published today, says all corporate donations over €100 have to be declared within 14 days.
The Fianna Fáil leader said the bill will “send a strong signal to the public and to the citizens that we are changing the way we do politics in this country”.