The incoming government in Ireland, expected to take power on March 9, will within days of taking the reins have to fend off an assault from EU finance ministers on the future of the Irish corporate tax rate following agreement on a bailout financed by its fellow European nations.
With pressure being applied particularly by France on a move towards a harmonized corporate tax rate in Europe, or at least a shift towards such, many expect that member states will now request that Ireland reduce the tax rate gap between itself and high tax countries, possibly in exchange for more favourable loan conditions.
European ministers are expected to meet within a week of the formation of a new Irish government to discuss the imposition of a minimum rate of corporate tax in the EU at large.
The Irish government, which has insisted that it will not alter its corporation tax rate, has received EUR85bn in financial assistance from a number of EU member states and the International Monetary Fund, at a rate of interest above normal market rates.
Upon reluctantly accepting financial assistance, Ireland agreed to implement austerity measures to make significant reductions to its deficit. An increase to the corporate tax rate was not included within this commitment.
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With pressure being applied particularly by France on a move towards a harmonized corporate tax rate in Europe, or at least a shift towards such, many expect that member states will now request that Ireland reduce the tax rate gap between itself and high tax countries, possibly in exchange for more favourable loan conditions.
European ministers are expected to meet within a week of the formation of a new Irish government to discuss the imposition of a minimum rate of corporate tax in the EU at large.
The Irish government, which has insisted that it will not alter its corporation tax rate, has received EUR85bn in financial assistance from a number of EU member states and the International Monetary Fund, at a rate of interest above normal market rates.
Upon reluctantly accepting financial assistance, Ireland agreed to implement austerity measures to make significant reductions to its deficit. An increase to the corporate tax rate was not included within this commitment.
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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.