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

I will just deal with the questions that have been put to me, as opposed to giving a lengthier response. Deputy Doherty and I have debated this issue on many occasions and we have differing views on it. While he acknowledges the decision I made in respect of the change, he feels it should have been handled over a different period. I have offered my reason as to why I believe this is the right decision on other occasions.

Deputy Michael McGrath is right to acknowledge that corporation tax figures are doing well at the moment. As to why I made the decision I made in respect of timing, I will briefly reiterate that my view is that to change it in the way Deputy Doherty is advocating would have consequences for the certainty that should be, and needs to be, at the heart of the tax code for a small and open economy. I believe this change needed to be made and that is why I made it in last year's budget. On Deputy McGrath's second question, which related to the figure Deputy Doherty quoted, it is difficult for us to put an exact figure on the tax revenue that could be reinstated because it is difficult to be accurate in respect of the degree to which available allowances will be drawn down and when. However, I acknowledge that the figure in this regard will be many hundreds of millions of euro. It is revenue that will come in to us, just over a longer period.

Deputy Burton asked me if I had a strategy. Yes, I do. I published the roadmap on corporate tax reform a number of weeks ago. There are reasonably few countries laying out the kind of changes they believe need to be made in their corporate tax policy with the clarity with which we have. The Coffey report lays out the effective tax rates for companies that have paid corporate tax here in Ireland over recent years. At their lowest point, these rates are still higher than the effective tax rate figures the Deputy quoted.

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