Exporting countries like Ireland would be severely disadvantaged if a common consolidated corporate tax base were to be agreed at European level.
 
This was stated by Marian Harkin MEP when she spoke on a Resolution on Competition Policy in the European Parliament. This Resolution is proposing the introduction of a common consolidated corporate tax (CCCTB). 

Marian Harkin said:  “At first glance the CCCTB proposal is efficient and transparent suggesting a simplification of rules but because the current status of the common consolidated tax base proposal gives companies an opt in or an opt out option it would actually increase the number of tax bases from 27 to 28 - this is surely not simplification.

 As it currently stands the CCCTB proposal would mean the re-distribution of European profits across the EU. If an Irish based company exports most of its goods to other Member States then the profits would be re-allocated at the point of sale and this would radically change the current system in favour of larger member states.  This would penalise exporting countries like Ireland and would contradict the commitment to the free movement of goods which is central to EU policy.

“I believe the introduction of CCCTB would damage Europe’s capacity to attract foreign investment because tax payable by multinationals where they are located will no longer be determined by the law of that state alone, but by reference to a complicated formula which can only be calculated in retrospect – that kind of uncertainty is bad news for Foreign Direct Investment”, Marian Harkin MEP concluded.