Oireachtas Joint and Select Committees

Thursday, 30 November 2017

Public Accounts Committee

Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts

9:00 am

Mr. John McCarthy:

If I may add a comment, if one looks at the Coffey report, that is exactly it. Mr. Coffey states that the increased profits associated with onshoring of intellectual property assets to Ireland are likely attributable to Irish resident companies. However, a claim for capital allowances for intangible assets would likely reduce substantially or eliminate the taxable income associated with the use of these IP assets. This is essentially Mr. Coffey saying what the Chairman just said. The companies brought the intellectual property onshore and it could offset that against tax using its capital allowances.