Be afraid, warn tax experts
THE country needs to watch its back. That was the message from the Irish Tax Institute which warned about major changes in corporate taxation in the UK, and likely changes in the US, that are set to be a massive challenge to this State.
Adrian Crawford of the institute stressed that foreign-owned companies support 250,000 jobs here and contribute €19bn to the economy, including corporate tax.
But other countries have upped their game and we now face intense competition for foreign investment from the likes of Singapore, Israel, Switzerland, Britain and Luxembourg.
The Americans, upset about their companies with bases here paying little in corporation tax, are likely to make changes to their corporate tax regime, Mr Crawford said. This could be bad news for us.
And there are constant threats to the corporate tax regime in this country from within the EU.
But it is the re-invention of Britain as a company-friendly country when it comes to tax that is really worrying the experts.
Britain has lowered its corporate tax rates, has lower marginal income tax rates and a lower VAT rate. And executives do not pay tax at the higher rate until they earn more than £150,858 (€150,859).
The trend of UK companies basing themselves here is set to be reversed, according to Mr Crawford.
Take note, Messrs Kenny, Noonan and Bruton.