Monday 23 September 2019

Varadkar: 'Trump's claim about Ireland's corporate tax rate is fake news'

Taoiseach Leo Varadkar made his comments in the Dáil on Wednesday
Taoiseach Leo Varadkar made his comments in the Dáil on Wednesday Newsdesk Newsdesk

Taoiseach Leo Varadkar has said comments made by US president Donald Trump about Ireland's corporate tax rate were "fake news".

The US president told reporters in the White House this week: "I hear that Ireland is going to be reducing their corporate rates down to 8pc from 12pc".

However, Mr Varadkar poured cold water on this suggestion in the Dáil this afternoon.

"I can confirm that President Trump's claim that we are proposing to reduce our corporation profit tax to 8pc is indeed fake news. There is no such plan to do so," Mr Varadkar told the Dáil.

Ireland's corporate tax rate, of 12.5pc, has proved of great interest to Trump who has committed to attracting American companies back to the US.

He has previously commented on Ireland's low tax rate in his first major tax reform where Ireland was named among a list of countries with a low corporate tax rate including France, Germany, Canada, Japan, Mexico and South Korea.

During his speech the former reality star said the US had "massive trade deficits" with these countries, but that his administration was going to "fix that".

He said cutting corporate tax is essential for the US to regain its competitive edge.

Meanwhile, the Irish government reaffirmed Ireland's commitment to retaining a 12.5pc corporate tax rate as a "core part of our offering" in Budget 2018.

Online Editors

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