No u-turn on corporation tax, pledges Noonan
IRELAND is "not for turning" on its 12.5pc corporation tax rate, Finance Minister Michael Noonan told the French government yesterday.
Speaking in Paris at an OECD meeting, Mr Noonan said Ireland would pay a higher rate on its bailout loans rather than alter the 12.5pc rate. Among those attending was French Finance Minister Christine Lagarde, a leading candidate to run the IMF.
"We're not for turning on this issue. We're prepared to pay the price," Mr Noonan said after talks with Ms Lagarde.
The Government has been on a diplomatic offensive in France this week, with Mr Noonan and Tanaiste Eamon Gilmore holding meetings with senior French politicians.
France is seen as crucial to removing European opposition to Ireland getting a cut in the 5.8pc rate on its rescue package.
The European Commission meanwhile is pushing a new form of corporation tax called the Common Consolidated Corporation Tax Base.
But Ireland is also totally opposed to this concept. It involves companies selecting the country they want to pay more of their corporation tax in, usually based on where most of their sales take place.