The EU has unveiled a series of new rules aimed at fighting tax avoidance by large multinational companies.
The measures include new laws for all member states to align tax policy across the EU, a blacklist of so called tax havens who refuse to co-operate, and a proposal to share tax related information on multinationals within the bloc.
Pierre Moscovici, Commissioner for Economic and Financial Affairs says the measures will hamper aggressive tax planning and boost transparency.
The commission says that it will "fight aggressive tax practices by large companies efficiently and effectively."
It adds that this is designed to "hamper aggressive tax planning, boost transparency between EU member states and ensure fairer competition for all businesses."
Speaking through an interpreter he said each member state will continue to set its own policy and tax rates:
Among the measures will be a plan to stop companies already in the EU from shifting their profits to lower-tax countries in Europe.
Ireland has been in the spotlight over its tax deal with tech giant Apple - the Commission is already investigating the company's tax payments in the country.
Apple indicated last night that it believes that it will face no back tax payments after the investigation releases its findings. Apple CEO Tim Cook held private meetings with the European Union's competition chief Margrethe Vestager last Thursday.
Luca Maestri, Apple’s chief financial officer, told the Financial Times that the company is confident that it has not violated tax rules.
"This is a case between the European Commission and Ireland and frankly there is no way to estimate the impact right now, we need to see what the final decision is going to be," he said, before adding, "My estimate is zero. I mean, if there is a fair outcome of the investigation, it should be zero."
If the company is forced to pay back taxes, the bill is likely to run to billions of euro - the company has admitted that if it has to payout it is likely to have to pay a "material" amount.
Meanwhile, Fianna Fáil has insisted that Ireland shouldn't increase its corporate tax rate despite pressure from Europe - regardless of who wins the coming election.
Fianna Fáil spokesperson on jobs and enterprise Dara Calleary says the turbulent time ahead for the EU will be the biggest issue for the next government.
But he added that we need to defend our own tax rates even in the face of uncertainty on the market:
