Comments on: Taxing corporates

By: Niall

Niall — Wed, 04 May 2011 12:28:55 +0000

Semi tongue in cheek… but if 12.5% is fine would raising it to 13% be a significant factor for incoming investors?

I agree absoluletly with your wider point about the need for (re?)engaging the European public with the EU

By: Perry Share

Perry Share — Tue, 03 May 2011 16:18:53 +0000

Sorry, here’s the link – missed an apostrophe in there somewhere

By: universitydiary

universitydiary — Tue, 03 May 2011 16:18:16 +0000

Not sure if your question is tongue in cheek, Niall, but no, lowering the rate is not necessary. It is a well understood rate globally, and maintaining it is fine.

By: Perry Share

Perry Share — Tue, 03 May 2011 16:17:21 +0000

Interesting article in today's New York Times about the real rate of corporation tax paid by companies in the USA.

By: Niall

Niall — Tue, 03 May 2011 14:22:45 +0000

So should we lower the rate?

By: universitydiary

universitydiary — Tue, 03 May 2011 13:05:26 +0000

I don’t think the corporation tax rate has much of an impact on company retention, but it is critical to recruitment. If we had had a rate of 15% Google, for example, would not have come. I was marginally involved and I know this.

By: Niall

Niall — Tue, 03 May 2011 12:47:21 +0000

I can remember 10% corporation tax rate in the 1980s. It was raised to 12.5% without disastrous consequences for the economy. I think we should consider a modest increase in corporation tax perhaps with an exemption for new investments for 5 years. This should be worthwhile if we can then renegotiate a significant reduction in debt repayments with ECB & IMF.
Multinationals come and go for many reasons – corporation tax rates being one of them – but it was not enough to keep Dell here, for example.

By: Vincent

Vincent — Tue, 03 May 2011 10:42:44 +0000

Except we are in a Union, something that implies the term mutual. And the entire place cannot always exist of an Aid package. At some point the Reformation has to hit home and it has to dawn on someone that every single pfennig we received from the CAP went to build up huge holdings in food companies which provide ZERO income to the Irish State. Or anyone else beyond a couple of dozen players on huge stipends.

By: Evert Bopp

Evert Bopp — Tue, 03 May 2011 10:28:00 +0000

While the relatively low corporation tax is indeed vital to the Irish economy it’s also a bit of a curse. If the only reason why the majority of FDI into Ireland is made is because of the low tax then that’s a famning verdict. It basically says that all the so-called “smart economy”, infra-structure and all other investment can be nullified by something that is no more than a discount. We’re obviously not the best but just the cheapest.
Ireland should as soon as possible, while we still have time, find other ways to compete on the international market.
What also needs to be done is to put more emphasis on the development of companies with their roots/origin in Ireland. These types of companies are less likely to “up sticks” and move to the next low-cost country when costs in Ireland increase.

By: Michael

Michael — Tue, 03 May 2011 10:24:02 +0000

I do think companies could leave if there is a change in our corporation tax scheme. I have heard anecdotal evidence of CEOs and board members of Irish based multinationals asking FCOs to draw up contingency plans to depart in the event of significant tax changes. This matter is being watched closely in MNC board rooms.