Donohoe likely to sign up to OECD’s 15 per cent corporate tax plan

Seen & Heard: KBC HQ in Dublin to be sold, electricity capacity, and Paddy whiskey plan

Minister for Finance Paschal Donohoe likely to sign up for a global corporate tax rate of 15%, the Business Post reported. Photograph: Julien Behal Photography

Minister for Finance Paschal Donohoe likely to sign up for a global corporate tax rate of 15%, the Business Post reported. Photograph: Julien Behal Photography

 

The Government is likely to sign up to the Organisation for Economic Co-operation and Development’s (OECD) plan for a minimum global rate of 15 per cent, provided the wording of the deal states that this will be the base rate, the Business Post reported.

The newspaper said this would have to involve the OECD dropping the draft document’s reference to a minimum rate of “at least” 15 per cent. The Republic, with a 12.5 per cent corporate tax rate, is one of only a handful of countries holding out against the OECD plan, with Mr Donohoe having repeatedly highlighted since it was unveiled in July that the rate being set at “at least” 15 per cent left open the possibility that it could be higher.

Eirgrid to warn electricity system stretched beyond capacity

The Business Post also reported that Eirgrid, the State’s power transmission operator, is set to warn this week that it will not be possible to secure enough new electricity generation in the coming years to meet soaring power demand. The so-called Generation Capacity Statement to be published by Eirgrid is set to blame the stretched capacity on unprecedented demand from data centres, which use up a lot of energy.

The report also states that Eirgrid’s technical engineers are training to manage potential blackout scenarios this winter, as excess capacity margins will be very tight.

KBC Ireland HQ for sale

The owners of KBC Bank Ireland’s headquarters have put the Dublin city centre building on the market as the Belgian-owned lender seeks to exit the market, according to the Sunday Times

The owner of the building on the corner of Sandwith and Fenian streets, Sherborough Enterprises, which is backed by hotelier Noel O’Callaghan, has reportedly hired property agents JLL in recent months to market the building privately. He owns the nearby Alex and Davenport hotels.

Paddy whiskey owners seeks JV or deal

The Sunday Independent reported that the US owner of Paddy Irish Whiskey, Sazerac, is seeking to set up a joint venture or acquire a distillery to secure a new base to produce the spirit.

Sazerac, which owns 450 brands globally, including Southern Comfort and Buffalo Trace bourbon, is also said to be considering building a distillery from scratch for Paddy, which is currently produced by Irish Distillers, after selling the brand to Sazerac in 2016. Paddy is the fourth-largest selling Irish whiskey internationally, with sales of around 200,000 nine-litre cases, and the report cites unnamed sources as saying that Sazerac may be targeting 500 million cases a year.

Bank of Ireland eyes SME lending rebound

The Sunday Independent reported that Bank of Ireland’s new business banking director, John O’Beirne, expects its SME lending could rebound to pre-Covid levels by the end of 2021. SME lending at the bank grew by 16 per cent in the first half to €1.4 billion and Mr O’Beirne told the newspaper the current trend suggests it could reach 2019 levels by the end of the year as various sectors of the economy continue to reopen.