Looks like Irelands low corporation tax rate days are numbered.
Ireland could lose up to a fifth of its corporate tax revenue under a proposal agreed by G7 finance ministers on Saturday, Minister for Finance Paschal Donohoe has warned.
But he said that such a loss of revenue, around €2 billion a year, was already built into the Government’s economic assumptions.
Finance ministers from the Group of Seven leading industrialised nations meeting in London said they would back a minimum global corporation tax rate of at least 15 per cent, and put in place measures to ensure taxes were paid in the countries where businesses operate.
Mr Donohoe, who was at the meeting in his role as President of the Eurogroup of eurozone finance ministers, said his officials had already modelled the impact of the proposals for Ireland.
“That indicates that Ireland could lose up to a fifth of our overall corporate tax revenue and that potential loss of revenue is already used in our medium term budgetary calculations,” he told The Irish Times.
The proposals have to be approved by the Organisation for Economic Co-operation and Development (OECD) in the coming months before coming into effect. Mr Donohoe said he would continue to argue for Ireland’s 12.5 per cent corporate tax rate in negotiations with EU member states and the United States, whose treasury secretary Janet Yellen he met on Saturday.
“In the bilateral engagement that I had with the OECD and with Secretary [Janet] Yellen I continued to make the case for legitimate tax competition within certain boundaries and for the role of small and medium sized economies in the agreement that is yet to come. And I’m going to continue to make that case,” he said.
https://www.irishtimes.com/business...under-proposed-reforms-says-donohoe-1.4585661
Ireland could lose up to a fifth of its corporate tax revenue under a proposal agreed by G7 finance ministers on Saturday, Minister for Finance Paschal Donohoe has warned.
But he said that such a loss of revenue, around €2 billion a year, was already built into the Government’s economic assumptions.
Finance ministers from the Group of Seven leading industrialised nations meeting in London said they would back a minimum global corporation tax rate of at least 15 per cent, and put in place measures to ensure taxes were paid in the countries where businesses operate.
Mr Donohoe, who was at the meeting in his role as President of the Eurogroup of eurozone finance ministers, said his officials had already modelled the impact of the proposals for Ireland.
“That indicates that Ireland could lose up to a fifth of our overall corporate tax revenue and that potential loss of revenue is already used in our medium term budgetary calculations,” he told The Irish Times.
The proposals have to be approved by the Organisation for Economic Co-operation and Development (OECD) in the coming months before coming into effect. Mr Donohoe said he would continue to argue for Ireland’s 12.5 per cent corporate tax rate in negotiations with EU member states and the United States, whose treasury secretary Janet Yellen he met on Saturday.
“In the bilateral engagement that I had with the OECD and with Secretary [Janet] Yellen I continued to make the case for legitimate tax competition within certain boundaries and for the role of small and medium sized economies in the agreement that is yet to come. And I’m going to continue to make that case,” he said.
https://www.irishtimes.com/business...under-proposed-reforms-says-donohoe-1.4585661
