Mr. Seamus Coffey:

On Brexit, much of our legislation mentions treaty countries or EU countries. We will automatically assume the UK is included in that. There may be elements of the tax code which might need to be tightened, particularly for Irish-UK trade. If we want various provisions to continue to apply, we must ensure the UK is included if it is just limited to EU countries.

The overall Irish tax regime has proved to be attractive over the past several years. We find ourselves in a bit of a sweet spot at present when it comes to attracting employment and investment. I am not necessary sure that from a corporation tax perspective in terms of attracting investment, there is anything particularly we have to change. We will continue to be in the EU and continue to be one of the closest markets for US companies in that regard, as well as with time zones, language, labour force flexibility etc. The concerns for attracting companies after Brexit will be different than corporation tax. For example, ensuring there is sufficient accommodation for people if a company wishes to locate here will be far higher on the agenda than changes to our corporation tax.

I recommend the analysis carried out by the Comptroller and Auditor General on corporation tax should be repeated. It was quite useful and provided insights into how our corporation tax regime works. The Revenue Commissioners are to be commended on the work they are doing. Much of the detail they are providing should be assessed in terms of allowance, claims, the overall level of incomes and how our tax system operates.

The key issue for a committee like this would be to highlight the risks. We have seen a doubling of corporation tax receipts from €4 billion to over €8 billion in quite a short period. It has provided a significant boost for the Exchequer. In 2011 and 2012, it was felt then that our interest bill would head for €10 billion while the corporation tax yield would be around €5 billion. Now, the view is that our interest bill will head for €5 billion while our corporation tax will be €10 billion. That is a €10 billion change in just those two items with one going up and the other going down. The wind is at our back and we cannot expect that to continue indefinitely.