The European Commission´s underhand attack on Irish Tax sovereignty by "weaponising" competition law in its 13 billion Euro tax demand to Apple is not only deeply harmful to Ireland but also a foretaste of what the EU would have in store for the SNP´s "independent" Scotland or for the UK if we stay in the Single Market
The Apple tax ruling is part of a wider plan that the EU has for harvesting tax from the economies within the Single Market - including the European Economic Area (EEA).
The EU has envied Ireland´s internationally competitive 12.5% corporate tax rate for many years. Reaction in the EU to George Osborne´s proposal to cut UK Corporation tax (to offset BREXIT costs) was that tax competition harms relations with the EU.
It´s therefore not a surprise to learn that since 2001 the EU has been developing plans for a Common Consolidated Corporate Tax base (CCCTB) as part of its attempt to create what amounts to an EU Tax cartel.
The broad idea of CCCTB is to divide the corporate tax collected by a Member State between all the Member states in which the Corporate is active (ie where the Companie´s assets, labour and sales are) rather than where the company is resident.
The CCCTB is really just a way of increasing taxes on wealth, employment and sales in other Memeber States and getting us to pay for it
The European Parliament voted overwhelmingly in favour of the CCCBT in 2012 but iwth the UK opposed, negotiations stalled in the Council. Now that the UK is in the way out of the EU the Commission is emboldened and together with the Apple ruling, the proposed CCCTB forms part of a two prponged attack on tax sovereignty.
Even if Memeber States veto the CCCBT the EU Commission has shown by the Apple tax ruling that it intends to use Competition Law of the Single Market to stop tax competition. The EU is so determined to take this path that it doesnt care that the retrosepctive and arbitrary nature of its ruling will discourage foreign investment.
Continued Memebership of the Single Market by for example replacing our EU Memebership with a place in the EEA would therefore subject us to EU control of tax policy
The consequence for members of the EEA is nothing short of taxation without representation