Ireland May See Another Surge in Corporate Tax from New 15% Rate, Says Ifac

Ireland may benefit from another surge in corporation tax despite having to give up its prized 12.5 per cent rate, the chairman of the Irish Fiscal Advisory Council (Ifac) has said, the Irish Times reported. Instead of losing €2 billion a year as the Government has forecast, Ireland could benefit directly from the recent global agreement on tax, which will involve a new minimum rate of 15 per cent, Ifac chairman Sebastian Barnes. “If the number of companies doesn’t change very much and the base stays the same you could be looking at a big increase in revenue,” he told the Oireachtas Committee on Budgetary Oversight. Barnes also noted that receipts from the business tax were being driven by increased levels of profitability, which has continued during the pandemic. He was responding to a question from Sinn Féin finance spokesman Pearse Doherty, who queried whether the Government’s forecast for a €2 billion a year loss was fit for purpose. The estimate was drummed up by the Department of Finance two years ago when the OECD forged agreement on the reallocation of taxing rights in favour of bigger countries. Read more.