The European Commission is planning to propose a new directive to ensure “uniform implementation in all member states of the European Union” of all agreements on international corporate taxation regulations. The government previously suggested that such rules could cost Ireland up to € 2 billion annually.
The European Economic Commissioner Paolo Gentiloni was due to announce at an online conference this afternoon at the Dublin-based Institute of International & European Affairs (IIEA) that all agreements on the so-called Pillar 1 talks of the OECD will be implemented in the EU through a new directive , according to a copy of his proposed speech that was circulated before the announcement.
His speech said that an OECD deal on so-called Pillar 2 issues, which deal with the taxation of the digital economy, would not be enforced in the EU through a new directive. Instead, changes to existing directives and legislative proposals would be required to ensure a common approach.
The Commissioner wanted to say in his speech this afternoon that he recognized that Ireland would be “cautious” about the proposed new rules to curb corporate tax avoidance.
But he insisted that Ireland, with its workforce and business environment, still had “all the tools” to keep its offerings going, even in the face of new tax regulations that could affect its benefits.
He should say that “gaps and discrepancies” between the tax systems of the EU countries led to “aggressive tax planning” by multinational corporations.