CORPORATION TAX:IRELAND'S VETO on corporation tax changes will not be affected by the Lisbon Treaty, the Irish Taxation Institute, which represents 6,000 tax advisers, has said. Recommending a Yes vote, the president of the institute, Joan O'Connor, said "much controversy and confusion" had surrounded the tax issue during the debate on the referendum.
"On the subject of taxation, Lisbon does not affect Ireland's position. There is no reason not to vote Yes on the basis of taxation," Ms O'Connor told The Irish Times.
The desire of some other EU states to support proposals by the European Commission for a so-called common consolidated corporate tax base (CCCTB) does not weaken Ireland's right to protect its existing tax rates.
The institute, she said, had carried out detailed analysis of the treaty on tax over the last few months before declaring its final verdict on its implications.
"While European law is a complex area and the treaty is a complex document, the final position on this could not be more simple - Ireland's tax veto is unaffected by the Lisbon Treaty. Treaty opponents allege that Ireland's corporate tax regime would be at risk if the treaty is ratified. At this stage in the campaign, the arguments are no longer founded on any actual measure in the treaty.
"Instead, they are centred on mistruths including that Ireland's tax veto will be affected by new voting measures or by the European Court of Justice (ECJ).
"As is the case now, post-Lisbon, all EU-wide taxation matters remain subject to unanimity," she said, adding that the ECJ would not win any powers over direct tax rates if Lisbon is passed.
"Rumours have also been started that after Lisbon, the ECJ will be able to interfere with our taxation regime in order to avoid distortion of competition. However, the relevant article deals with indirect taxation. It very specifically could not be used to deal with corporation tax or any other direct tax," Ms O'Connor said.
Rumblings that Ireland's voting rights could be diluted or changed by the introduction of qualified majority voting (QMV) to areas now requiring unanimity are simply not valid, she added.
