The Institute of Chartered Accountants in Ireland (ICAI) has expressed concern that small business may suffer from the Government's agreement with the EU Commission on corporation tax. The ICAI president, Mr Pierce Kent, said the institute welcomes the agreement for a 12.5 per cent corporation tax rate by January 1st, 2003, but "would be concerned if the lowering of corporation tax is accompanied by new taxes or the abolition of reliefs which might impact negatively on small business".

He urged that the government to "consult with the small business sector and their tax advisors before introducing major changes".