Legal

Corporation Tax: How Important Is The 12.5 % Corporate Tax Rate In Ireland?

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Executive Summary

There has been considerable recent controversy and complaints about the corporate tax rate in Ireland. For example that it is an unfair 'Beggar thy neighbour' type policy; that it induces tax competition to the detriment of other countries in reducing their tax revenues; that Ireland needs tax, why not increase the corporate tax rate. The Financial Times (Peter Spiegel, 8, December) reports that opposition Social Democratic and left wing parties in Finland strongly opposed the EU/IMF fund for Ireland on the basis that the Irish corporate tax rate should be raised, although it was also reported that there was barely any objections to the fund in the Bundestag (Quentin Peel, Financial Times, 8, December).

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