Tax reforms and the EU

A chara, – Your editorial urging the Government to engage assertively and positively with the changes under way in Europe is timely (September 30th). Ireland stands to benefit greatly from a more efficient, more stable EU, but in order to shape the coming reforms we must engage in the debate.

We have rightful concerns about our corporate tax rate. Brute harmonisation and blunt taxation by country are not in our national interests.

However, the current system needs reform.

It is not sustainable to rely on taxing EU-wide profits at Irish tax rates. Not only does this short-change our EU partners, it encourages a race to the bottom disproportionately affecting small countries. We are reluctant to demand our fair share of tax from companies that can simply shift their base to another small EU country desperate for business. We thus undercut our own sovereignty.

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Dissatisfaction with the current EU tax system means it will be reformed one way or the other. We can resist the inevitable reforms, or guide those changes so they work in our interest. If we stand up and present a positive vision that other member states can support, such as a slow phase-in to any changes and a redistribution mechanism to ensure no state loses out, Ireland would ultimately benefit from such tax reform.

The current system is not in Ireland’s long-term interests. Let’s change it in a way that strengthens us and our EU partners. – Is mise,

RORY CROTTY,

Douglas,

Cork.