Cowen to keep corporate taxes low

IRELAND’S 12½% corporation tax rate is a key factor in attracting foreign investment and will remain unchanged, Finance Minister Brian Cowen told American businesses yesterday.

Speaking at the American Chamber of Commerce Ireland’s annual dinner to mark the Thanksgiving holiday, Mr Cowen said he was opposed to any attempt by the European Commission to harmonise corporation tax rates across Europe.

“It is important that rights in relation to taxation are retained at national level,” he said. “It is for each country to decide how its expenditure is to be funded but I, for one, have no wish to return to the days of high tax and spend and the consequences this had for the economy.”

Mr Cowen also said Ireland had been “a great investment location” for American businesses

Chamber president Ciaran Ennis said the past year had been turbulent for political relations between America and the EU but that transatlantic business relations continued to strengthen. Ireland had benefited “enormously” from this relationship, he said.

“Ireland, I am glad to say, has been able to play a role far in excess of its size. We made a major contribution to building the new nation and our ability to tap into and connect with the US has been a tremendous advantage,” said Mr Ennis, who is also head of marketing at IBM’s European sales headquarters in Dublin.