Consultation puts tax law plans in spotlight
THE Department of Finance has launched a public consultation on how Ireland's tax system might respond to proposed international changes.
The Organisation for Economic Cooperation and Development (OECD) is already conducting a public discussion around its Base Erosion and Profit shifting (BEPs) project, which could see tax avoidance loopholes shut down.
The Department's consultation includes six questions, including concerns about whether current international tax proposals would be of concern to Ireland, and whether Ireland's residence rules are appropriate in the context of the BEPs project.
The consultation makes it clear that Ireland's 12.5pc corporation tax rate will not change.
Joe Tynan, tax partner at PwC, said the discussion had moved from whether there would be changes to the international tax regime, to when.
"Companies who have operations in Ireland will want to pay close attention to proposed changes, and ensure they are ready to deal with any potential change," he said.
"The consultation paper draws particular attention to Ireland's corporate residency rules. This has gathered unwelcome attention internationally."
Kevin McLoughlin, head of tax with EY Ireland, welcomed the announcement from the Department.
"This public consultation is part of a process of review and international engagement on tax matters, starting with the publication of the International Tax Strategy statement in October 2013," he said.
The public consultation is the next step in a process under way involving business groups through IBEC, the Irish Tax Institute, the American Chamber of Commerce and Chartered Accountants Ireland.
The consultation will run until July 22.