Paschal Donohoe, Minister for Finance and Minister for Public Expenditure and Reform of Ireland claims that corporate tax change is inevitable!
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Corporate tax revenues will probably take a €2 billion hit with changes in international taxation that are coming down the road from the Organisation for Economic Co-operation and Development (OECD), Paschal Donohoe said on Tuesday in Brussels. The Minister for Finance said it was vital to prepare and plan now for the inevitable by running sustainable budget surpluses.
“This vindicates the decision that was made by the Department of Finance to begin to review downwards our projected corporate tax receipts from the mid-2020s onwards,” he said
Mr Donohoe, who was in Brussels for a meeting of EU finance ministers that discussed proposed OECD reform of the global taxation system, also met British chancellor of the exchequer Sajid Javid to discuss Brexit and its aftermath. It is the last meeting of EU finance ministers that Britain will attend.
End of the ‘double Irish’ creates a taxing time for Dublin!
Paschal Donohoe, the Irish finance minister, is giving Davos a miss this year – owing to the small matter of an upcoming general election at home. Since 2014, multinationals have been moving intellectual property assets to onshore locations ahead of proposed changes to international tax rules that will clamp down on offshore havens. A more enduring threat is that if there were reforms to the international tax system that undermined Ireland’s attractiveness to foreign direct investment.
Responding to recent comments by Mr Javid about his aspiration to break from EU regulatory alignment, Mr Donohoe said he emphasised “that if there is an ambition within the UK for an ambitious future trade deal, a level playing field is an absolutely vital and necessary foundation of that kind of future relationship”.
“We will have to ensure, particularly in goods, that everyone is playing by the same rules,” he said, adding that state-aid rules conformity are particularly important in this respect, “a vital prerequisite of any deal”.
Commenting on the storm of protest at the introduction of a higher state pension age from next year, the Minister held out some slight hope that the Government may mitigate the changes for those approaching retirement.
Pension age changes had been well-flagged by previous governments, he said, but “I absolutely understand that, as Irish citizens approach the point at which they may be accessing or claiming the State pension, the fact that the age is changing is of course an issue of great concern to them”.
State finances could take €2bn hit, warns finance minister!