We must reform tax code for foreign corporations
THE news that the European Commission is looking at how the Government here taxes some multinational companies should give us pause for thought. The Government has made it clear that the 12.5pc rate of corporation tax is not up for negotiation but Finance Minister Michael Noonan has been quietly signalling for some time that there can be movement over other aspects of the tax code.
He is right. It is unacceptable that so many foreign companies with headquarters overseas are able to avoid almost all taxation thanks to various loopholes in the law.
Mr Noonan is also right to say, as he has in the past, that this cannot be done without similar moves in other countries.