According to EUBusiness our Corporate Tax rate is not as safe as our government is claiming. Steffen Seibert the current head of the German governmental press- and information-agency has stated:
The German government will not be making proposals” regarding potential reforms to be put in place for the up to 90-billion-euro (123-billion-dollar) package
“But it is clear that corporation tax should be one point among others when one considers how to increase the ‘receipts’ part of the budget,”.
The German Daily Bild also launched an attack on our low tax rate in an editotial,
“First the country steals jobs and tax revenue from other countries with its extremely low taxes, and now the other countries have to pay up for the second time to prevent its banks from collapse,”
So the Government need to be telling us the truth on this one!
If we raise it, we could be jeopardising our recovery, as it could cause a flight of companies. While the average in the eurozone is 25.7%, we could raise it slightly and not damage it too much, but how much is that? Half a percentage point, a full percentage point? Interesting days ahead on this.
- Ireland holds firm on corporate tax rate (newstatesman.com)
- Ireland: A Lesson in Corporate Tax Rates and Gaming (wallstcheatsheet.com)
- Corporate tax change ‘against EU policy’ (irishexaminer.com)