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EU threatens to target our key tax break for foreign firms
Date 09/09/2010 14:33  Author webmaster  Hits 1004  Language Global
09 SEP 2010
 
By Emmet Oliver | Irish Independent
 
A FRESH threat to Ireland's crucial 12.5pc corporation tax rate has emerged in new proposals from the EU Commission, the Irish Independent has learnt.
 
Scores of multinationals, employing thousands, would be likely to leave Ireland if there were changes to the rate, which is less than half that operating in many rival locations.
 
A draft working paper from the commission claims different rates of corporation tax distort the single market and discriminate against small firms who cannot easily move to lower-cost locations. The costs of having 27 different tax systems are also very high, the document claims.
 
Ireland is likely to oppose any moves towards what is known as tax harmonisation, but the EU Commission wants to make the region more competitive -- and having different rates in different locations is viewed negatively.