There has been much recent debate in Ireland regarding the country’s competitive tax rate of 12% and its application in a European Union (EU) context. Is it too low? Will it survive European tax harmonisation?
This is not just a topical Irish debate. The concept of European tax harmonisation is also a hot topic in the UK and many Continental jurisdictions. European governments are constantly seeing the European Court of Justice (ECJ) dismantle discriminatory domestic tax rules and legislation. Recent major tax changes in the UK, Germany and other jurisdictions have made substantial changes to domestic tax systems in order to buttress them against potential challenge before the ECJ.
