Warning over OECD corporate tax plan

New OECD proposals on how corporate tax is calculated would put Ireland at a considerable disadvantage in attracting foreign direct investment in the future, according to Chartered Accountants Ireland (CAI).

Under these proposals, which have now been put up for public consultation, multinationals would be subject to corporate tax at the point of sale rather than where products are manufactured. The CAI said this would favour big economies with large consumer markets to the detriment of smaller countries.

“These proposals, which are a key element of a larger project to revise the way multinational companies are taxed, would fundamentally change the business model for companies based in Ireland,” said CAI tax director Brian Keegan.