‘No sign’ of corporate tax sustainability risk
Finance Minister Paschal Donohoe has said there are “no signs” that the business environment faced by multinationals operating in Ireland is changing in a way that could pose a risk to the sustainability of Ireland’s revenue. ‘Corporation tax.
The Minister made his remarks in an interview recorded last week with the accounting firm PwC and which was broadcast as a webinar this morning.
A report from the Department of Finance on the sustainability of record levels of corporate taxes is due in Cabinet today.
The minister also said he was confident that proposals for a new, internationally agreed minimum corporate tax level would be approved in both the US and the EU.
He described discussions around the second pillar of the OECD-brokered deal, announced last year, which allocated taxing rights to the profits of large companies in different countries as “technical”, adding that he ” will take some time to move forward.”
Mr Donohoe also said that if there was no progress on these reforms, then “we would be back to square one” and “the risks for small open economies will be significant”.
He said aid for energy expenditure by small and medium-sized businesses would be part of the budget package, but he did not go into details.
He also said that Europe’s future security will depend on its ability to become a clean energy producer.