Corporate Tax developments, upcoming launch of Experience Economy campaign, and more

Dear Member,

Next week Ibec will launch a new campaign focusing on the Experience Economy. This sector comprises of businesses and a workforce which operate across multiple sectors in Ireland encompassing hospitality, retail, travel, food, drink, tourism, entertainment, technology, events and organisations in the arts, cultural, sporting and heritage sectors. The Experience Economy is a contemporary expression and recognition of what is a dynamic, diverse and substantial part of Ireland’s business model.
 
Prior to the Covid crisis, over 330,000 people were either employed by or supported directly by demand from the industry and it contributed €4.5 billion in wages, salaries and employment taxes every year. The closure of many parts of the Experience Economy due to Covid has shown the extent of employment in this sector and its intrinsic value in making Ireland a great place to live, work, invest and experience.  

This campaign will create the conditions for the Experience Economy to achieve world class potential that is sustainable and uniquely Irish by educating business, stakeholders and communities about the Experience Economy’s reach and value and lobbying for appropriate investment and status for the industry and its ecosystem.

On Wednesday, 21st of April at 8.30 Ibec will be hosting a virtual event to officially launch our Experience Economy campaign. It will highlight the Experience Economy’s role as a dynamic, diverse and substantial part of Ireland’s business model. You can register your interest for the event here.  

Since my last correspondence with you, there has been significant developments in national and international debate of corporate tax regimes, most notably the endorsement from US Treasury Secretary, Janet Yellen of a harmonised global tax rate. 

The endorsement confirms that the trend on corporate tax rates globally, which had been falling in recent years, is now very much reversing. The UK has reversed course too with the first corporate tax rate rise since 1974.

These developments have been met by many in Ireland with dread and a sense of impending doom. While such changes would undoubtedly have implications for our business model, I strongly believe that this is a moment to reflect on what opportunities such developments present Ireland. 

In the last decade, the BEPS process has catalysed Ireland’s business model to being one of substance with extraordinary levels of investment such that the capital stock in our globalised business model has been transformative. Ireland has established a new benchmark; the challenge is now one of retention as opposed to aspiration. One positive of the shifting corporate tax trends to globalised effective minimum rates is that Ireland cannot be undercut in its future tax proposition. The opportunity is to deliver the factors that our society needs to sustain our benchmark – investment in social infrastructure: housing, health, education, and innovation. 

My opinion piece published in The Irish Times today captures the sentiment above.  

Lastly, we have a number of interesting upcoming events: 

This Wednesday, 14 April we will be hosting a session with Professor Mark Ferguson, Ireland’s Chief Scientific Adviser. Professor Ferguson will give a short presentation on the recent publication from the Government’s Expert Group on COVID-19 Rapid Testing and will then take part in a moderated Q&A. Please register your interest here.

This Thursday, April 15th we are hosting two events: our annual Ibec Employment Law Conference, as well as a session on ‘Cyber security: What Boards and CEOs need to know’. Finally, on Monday the 19th of April, we will host ‘Global Leadership in Action - Achieving an Equal Future by Getting Serious About Gender Equity’. 

As always, please do get in touch if you have any feedback. 

Best wishes,
Danny McCoy 
CEO