‘Illusory’ GDP puts focus back on tax regime

Huge upward revisions to economic growth numbers last year, which have been described as “artificial” and “illusory”, risk putting Ireland’s corporate tax regime back under the international spotlight, analysts have warned.

The CSO said capital transfers into Ireland last year led to “dramatic” revisions to the GDP growth numbers and mean the economy here surged in 2015 by 26.3%, up from the 7.8% expansion in a preliminary estimate.

Experts said following the international tax crackdown led by the OECD, a small number of multinationals last year switched their capital assets from Caribbean tax havens into Ireland.