By Joshua Kieran-Glennon
The Common Consolidated Corporate Tax Base (CCCTB) is an EU policy aimed at harmonising the collection of corporation tax in all Member States. It targets low tax jurisdictions like Ireland, and seeks to prevent multinational corporations from allocating their profits to offices or subsidiaries located in those jurisdictions, taxing them instead at their source. European Commission President Jean-Claude Juncker has stated that “While recognising the competence of Member States, the modernisation of tax systems is essential for delivering on the priorities of the European Semester of economic policy coordination” (Juncker, 2014). EU states generally retain exclusive competency over their taxation policy, and as corporation tax is often used to pursue specific policy outcomes, as well as generating income for the state, interference with it can have wide-ranging consequences. This post explores what economic effects the CCCTB is likely to have on Ireland, and whether it constitutes an infringement on taxation competency.