IDA plays down US investment fears

The Industrial Development Authority has played down fears that a corporate tax amnesty introduced by US President George W Bush could reduce investment by US firms in Ireland.

The amnesty gives US corporations a once-off chance to repatriate $350bn in accumulated profits held around the world and pay just 5.25% tax on the money.

Reports at the weekend said a large amount of this money was being generated and held in Ireland by technological and pharmaceutical firms.

The reports said the tax amnesty could discourage these firms from reinvesting the money in their Irish operations.

However, IDA chief executive Sean Dorgan said today Ireland had more to offer foreign companies than merely tax advantages.

“There have been some changes in the US tax regime, but they’re not going to impact in any way significantly against Ireland and we’re quite confident about that,” he said.