Tax changes must be in tandem with other states - US chamber
Organisation submits 40-page document to Department of Finance on Irish tax regime
Louise Phelan, president and Mark Redmond, chief executive of the American Chamber of Commerce. The chamber noted that since 2010 Ireland had witnessed the greatest surge of US investment in more than a decade, with some 700 US firms now employing over 115,000 people here.
The phasing out of contentious elements of Ireland’s corporation tax regime must be done in tandem with changes in other countries so as not to put Ireland at a competitive disadvantage, the American Chamber of Commerce Ireland has warned.
In a recent submission to the Department for Finance, the chamber, which represents US employers here, acknowledged the Government’s wish to ensure that Ireland’s tax regime is seen as “fair” internationally. However, it said there were a variety of views over the timing of any moves to change Ireland’s corporate residency rules.
The contribution comes in advance of recommendations from the Organisation for Economic Co-operation and Development (OECD), which are likely to seek an overhaul of the international tax rules.
The OECD is examining how to curtail base erosion and profit-shifting schemes, which multinationals use to reduce their tax liabilities.
The department is considering making changes to address the controversial tax scheme known as the “double Irish”, which allows companies to reduce tax payments by exploiting differences between Irish law and that of other countries.
Surge of investment
It noted that since 2010 Ireland had witnessed the greatest surge of US investment in more than a decade, with some 700 US firms now employing over 115,000 people here.
It was very much in the national interest, it said, that the competitive corporate taxation regime with its headline rate of 12.5 per cent remains, despite international pressure. The “overriding principle” was that Ireland should not unnecessarily put itself at a competitive disadvantage for foreign direct investment. The chamber suggested the Government should signal changes to its regime only if OECD consensus is reached and competing jurisdictions make similar changes.