Paschal Donohoe to Europe: ‘Hands off’ our corporate tax rate

Finance Minister Paschal Donohoe has issued a strong “hands off” message to Europe over moves to force Ireland to increase its corporate tax rate.

Mr Donohoe, speaking from Davos, was responding to sharp attacks on Ireland’s tax regime and said he strongly rejected suggestions that Ireland is in a “race to the bottom”. He said Ireland’s 12.5% rate is competitive, transparent and stable and said he is not going to consider any move on that.

He said Ireland, like all EU countries, has the right to set its own tax rates and no change to that policy is envisaged.