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Thursday
Nov182010

Could Corporation Tax be Forced to Rise in Ireland?

The role that the European Union plays is questionable and controversial in some cases. This has come to the fore again recently with regard to the level of Corporation Tax that is currently being paid by companies in Ireland.

It would appear that the EU wants the rate to rise so that it is in line with the rates paid by businesses in other EU countries. While the idea is that each country sets its own rates, a top commissioner in the European Union has said that the prospect of Irish taxes rising was going to be ‘a fact of life’.

I think this once again illustrates the problems inherent in trying to bend all European countries round to the same set of rules. Not only does it endanger the independence of each country, it can also harm the good work that has been done financially in some areas. Ireland has been doing well in encouraging some businesses to come back to Ireland when they had previously moved elsewhere.

Ireland’s concerns about the potential harm that an increase in Corporation Tax would do to their country’s fortunes are easy to understand. They will be eager to continue their good work and they don’t want interference from the EU while they do it.

I believe that such instances will continue to crop up for the foreseeable future. Hopefully the Irish government will be able to keep their low taxes so they can continue to attract other businesses into the fold. But we shall see.

In the meantime if you want to learn more about the rate of Corporation Tax payable by your own business, contact us at St Matthew now in confidence.



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