Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy for his question. Ireland has a low nominal rate of corporation tax. Critically, however, that rate is applied across a very wide base of economic activity in our country and there is very little difference between our nominal rate and the rate at which companies actually pay. As the Deputy knows, the information released by the Revenue Commissioners shows we have an effective tax rate of at least between 10% and 11%. The difference between that effective rate and the nominal rate is negligible. Therefore, I take a very different view of this matter. This is a critical issue for us. It concerns the predictability of our corporation tax rate, and protecting that rate is very important to the future of our economy. I am taking the action that I am for that reason.