The Minister for Finance and Public Expenditure & Reform, Paschal Donohoe T.D., has today (Tuesday) published the Review of Ireland’s Corporation Tax Code, undertaken by Mr Seamus Coffey.
Mr Coffey was appointed as an independent expert in October 2016 to review Ireland’s corporation tax code. The terms of reference for the review included: tax transparency; avoiding preferential treatment; further implementing Ireland’s international commitments; delivering tax certainty; maintaining competitiveness; and maintaining the 12.5% corporation tax rate.
The Review states that the increase in Ireland’s corporation tax receipts can be expected to be sustainable up to 2020. It also acknowledges that Ireland has reached the highest standards with regard to tax transparency. This has been further confirmed by the recent awarding to Ireland by the OECD’s Global Forum of the highest international rating on tax transparency and exchange of information.
The Review makes a number of recommendations to ensure that Ireland continues to meet the highest international standards, including:
Scrutiny of proposed measures to meet OECD and EU standards on preferential treatment;
Supporting the EU Directive on mandatory disclosure in line with OECD recommendations;
The passage of the Taxation and Certain Other Matters (International Mutual Assistance) Bill through Dáil and Seanad Éireann should be facilitated;
Updating and expanding the scope of Ireland’s transfer pricing regime;
Consideration of whether to change to a territorial tax system;
Enhancement of the resources of the Revenue Commissioners to deal with international dispute resolution.
The introduction of a cap on capital allowances claims with respect to intangible assets as a way of smoothing corporation tax revenues over time.
Given the need to ensure the certainty of our regime, the Review recommends a detailed consultation process with the relevant stakeholders.
Publishing the Review today, Minister Donohoe said: ‘I welcome this comprehensive review which presents an overall positive message for our corporate tax code. The Review provides a clear road map and timeframe for Ireland to implement important international reforms’.
“The Review points to the sustainability of our current corporate tax receipts to 2020, which is very positive. I welcome the emphasis given in the Review to the importance of certainty, which is core to our corporate tax offering. Our 12.5% corporation tax rate remains the bedrock of our competitive corporation tax regime and that is not going to change.
“The consultation process recommended in the Review is important if we are to reduce uncertainty and have better-informed policy making. I intend to launch this consultation process on Budget Day.”
ENDS