EU digital economy tax could cost Ireland €160m, Revenue says
Ireland would be net loser from tax with maximum yield of €45m, according to Revenue officials
The European Union is hoping to require digital businesses to pay tax on profits generated in states where they have a significant digital presence, even if they are not physically located there. Photograph: iStock
Ireland could lose up to €160 million in tax revenue if EU proposals for taxation of the digital economy are approved, an Oireachtas committee heard on Tuesday.
Speaking at the Oireachtas Finance committee, Kate Levey, an official with the Revenue , suggested the cost of an EU proposed 3 per cent tax on digital services in the country those services occurred could cost Ireland between €120 million and €160 million a year in revenues.