Mr. Brian Keegan:

We are down to the two strand issue, namely that is a combination of Ireland maintaining its 12.5% corporation tax rate but also interacting through its double taxation agreements and through EU treaties with other sovereign nations. If we make drastic unilateral changes, we will damage the existing network and create, perhaps, an atmosphere of uncertainty because foreign direct investment decisions tend to be taken over five to ten year spans. Companies proposing to invest here like to see a certain reliability and continuity. Accordingly, there would be a reputational as well as the practical issue.

I would be slightly concerned as to the consequences of those kind of changes were we to act unilaterally. If we act in concert with everyone else, it might be a good development for the country. What could happen is that more profits would come into the charge of tax at 12.5% as compared with higher rates in the US, UK or anywhere else. I would not have particular concern with everyone moving together on several initiatives. However, to act unilaterally might be damaging to Ireland’s interests.