No guarantee Ireland will keep ١٢.٥% corporate tax rate Taoiseach

ما يقرب من ٤ سنوات فى The Irish Times

Taoiseach Micheál Martin has said he will not be making commitments to US companies “one way or the other” that Ireland will be keeping its 12.5 per cent corporate tax rate.
It comes as Ireland comes under pressure to sign up to an Organisation for Economic Co-operation and Development (OECD) plan for a global corporation tax rate of at least 15 per cent. Ireland is one of only a handful of countries holding out against the plans.
Mr Martin is in the New York where he is attending United Nations meetings and will also support the work of IDA Ireland which is tasked with attracting inward investment into Ireland.
The 12.5 per cent rate has been a cornerstone of Ireland’s strategy to bring jobs to Ireland for decades.
Asked if he will be telling US companies that Ireland is committed to the 12.5 per cent rate, Mr Martin said he would not be making commitments “one way or the other” to individual companies.
He later stressed that talks on the OECD deal are ongoing.
“We have issues with some of the text and where the agreement is at this stage but there’s further discussions underway,” he said at a joint press conference with New York Governor Kathy Hochul.
Commitments
He said the next six weeks will be important in bringing those talks to a conclusion.
“The issues that we would be insisting on is certainty and continuity in tax frameworks so that companies know the landscape over a reasonable period of time and those are the objectives that we’re looking at in the context of the OECD process.”
Asked if he would be offering a commitment to companies on keeping the 12.5 per cent tax rate Mr Martin replied: “I’m not going to be making commitments one way or the other to any individual companies.
He said there was public consultation and “we have got feedback from companies in respect of where they want Ireland to land... in terms of this issue.
“And there’s a bit of travel to go yet. We’re engaged in the process, we’re going to continue to engage constructively.”
Later Mr Martin was asked if Ireland is still committed to the 12.5 per cent tax rate.
He repeated that Ireland is engaged in the OECD process and wants “certainty”.
Put to him that he said he was not going to offer a guarantee to companies he said: “We’re not in a position right now when we’re in discussions and involved in the process.
“This isn’t about guarantees around specifics,” he added.
He said that the 12.5 per cent rate has been a “key part of our tax policy” but Ireland is engaging in the OECD process.
Mr Martin said Ireland has not agreed to its conclusions so far “because they don’t give us any certainty of continuity about the future.”
Asked if he accepted that this trip to the US will be the first time in where a Taoiseach won’t be guaranteeing the 12.5 per cent rate he said: “The companies understand the process.
Bottom line
“They understand that Ireland has been part of the OECD process as we have been since 2013 and that’s no big surprise to anybody, but there’s still a journey to travel on this yet, on a number of fronts, and that’s where it is.”
During the joint press conference with Ms Hochul, the Taoiseach highlighted how Irish companies have created about 90,000 jobs in the US and US companies have brought as many as 130,000 jobs to Ireland.
Ms Hochul was asked if she regarded Ireland as a tax haven, given that combined federal and state corporate taxes are more than 26 per cent in New York.
“Independent of a company’s calculation as to their tax advantages and disadvantages we’ll see a tremendous synergy between American companies and places like Dublin,” she said. “Companies like Apple and Google and Facebook, companies that are in New York state, but also have their European headquarters in Ireland. So each company will make their own decision.
“Obviously we want businesses to [come to] New York but we also know that we benefit from a synergistic relationship with companies that are Irish and also American companies working together.
“The bottom line is - is there any way we can create jobs? - you’ve got my attention.”
Earlier, Minister for Finance Paschal Donohoe said Ireland may remain outside of the tax deal amid concerns about “deeply problematic” aspects of the plan to tax business profits around the world.
Despite this, European commissioner for economy Paolo Gentiloni, who was in Dublin on Monday for talks, said he is “quite confident” that a deal can be struck.
Speaking after their meeting, Mr Donohoe said he emphasised “that the ‘at least’ is deeply problematic for Ireland”.
Mr Donohoe said the State is “inside the process of the OECD, but we are not currently in the agreement. I emphasised the huge challenge and importance of this process to Ireland and how central the stability of corporate tax policy is to our economy.”
He warned that Ireland’s position may not change.
“I remain committed to seeing whether the process can yield an outcome that Ireland would be willing to consider joining. But equally, I have communicated to my colleagues that where we are at the moment of not being in the agreement is a position that could continue,” he said.
“I’m very clear that it is not appropriate for Ireland to be in the agreement. Now, that may continue to be the case. But equally, we are working very hard to see if an agreement is possible that would allow Ireland to join.”
The Government also wants clarity on whether the US Congress accepts the plan before deciding whether to move.
Mr Gentiloni said that it would be a “nonsense” to suggest that the US would not be centrally involved.
“Let me recognise that if we have a chance to reach this achievement, this is mostly due to the US administration initiative and pressure. But of course we need the European Union to have member states on board, as this is not – for the moment – the case. And of course the Americans will do their part but I can’t imagine a global agreement without the central role of the United States, this would be a complete nonsense . . . It is thanks to the United States that this global agreement . . . is now under discussion.”
He said there are 134 countries that signed the agreement in the preliminary stage, “so of course the US will be there”. The commissioner also expressed confidence that a deal could be reached despite Irish concerns.
“Yes, I am confident that we can reach an agreement, a global agreement. I think the answer to this question eight months ago would have been negative. What has changed in the last period of course is the new commitment of the US administration.”
Mr Donohoe reiterated that whatever recommendation he makes to Government in the coming weeks on the OECD deal would be guided by what is in the best interests of the country.
“With any decision that we make, there will be consequences. The decision to be outside an OECD framework will have consequences. The decision for Ireland to enter into an OECD agreement will also have consequences for national tax revenue. And we are using our energies and our engagement with the OECD and with the commission in a positive way to see whether it is possible to reach agreement. But we are still some bit away from that,” said Mr Donohoe.

ذكر فى هذا الخبر
شارك الخبر على