Written answers

Tuesday, 31 March 2015

Department of Finance

Corporation Tax Regime

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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269. To ask the Minister for Finance the discussions held with the British Prime Minister, Mr. David Cameron, recently in relation to Ireland's corporate tax rate; and if he will make a statement on the matter. [4357/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I assume your question refers to the changes taking place with regard to the Northern Ireland Corporate Tax Rate. I have not recently met with Prime Minister David Cameron. The corporate tax rate in Northern Ireland is a matter for the UK Government and Stormont Executive.

Ireland is fully supportive of fair tax competition and of any measures which would bring positive economic benefits to the Island of Ireland as a whole. The 12.5% rate is a pillar of the Irish taxation system but it is important to remember that attracting foreign direct investment and stimulating growth is about much more than just having a competitive tax rate. As I have stated previously, the Irish system is built upon the 3 Rs and while rate is a key feature, the other two Rs - regime and reputation are equally important in forming a competitive taxation landscape.

The OECD has stated that a competitive but stable corporate tax rate as well as a broad base has been shown as the best way to foster economic growth. Reform of the corporate tax rate in Northern Ireland has the potential to bring many benefits to both parts of the Island.

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