Ibec, the group that represents Irish business, today acknowledged the publication of the independent review of Ireland’s corporate tax code by Seamus Coffey. The group welcomed the analysis of the available evidence, and in particular a number of sensible recommendations. It cautioned, however, that some recommendations would require careful thought and further consultation in order to avoid any unnecessary negative impacts on the certainty of the tax regime.
Gerard Brady, Head of Tax and Fiscal policy at Ibec said: "The global corporate tax regime has gone through an unprecedented era of change over recent years with the advent of the OECD’s Base Erosion Profit Shifting (BEPS) process, the re-emergence of Common Consolidated Corporation Tax Base (CCCTB) proposals at a European level, and the prospect of US corporate tax reform. In this context, today's report is a welcome review of how our regime has developed and could evolve into the future.
“The report contains a number of sensible recommendations on improving the Irish regime, which was recently ranked among the most transparent in the world by the OECDs Global Forum on Transparency and Exchange of Information. However, a number of recommendations which have potential implications for SMEs, and the type of tax system we operate, in particular, will require careful thought and further consultation.
“Despite recent challenges, Ireland’s model of a small, business-friendly open economy within Europe has continued to demonstrate serious substance, with accelerating investment and employment in highly globalised industries. Ireland’s corporation tax strategy, while not the sole reason for this success, is a major part of our offering and must be safeguarded. We must be fully conscious of the opportunities and competitive threats to our FDI driven growth model, which exist in Europe, the UK and US, and be prepared to act accordingly. The review also takes a positive view on the sustainability of Ireland's corporation tax receipts out to 2020 at least - it is vital that this revenue is urgently channelled into much needed capital investment and not built into the day-to-day expenditure base."