Corporation tax - Rate can’t be changed

THE Government was right yesterday to move quickly and firmly to nip in the bud suggestions that proposals in a draft European Commission communique regarding corporation tax would have implications for our relatively low 12.5% rate.

Minister for Enterprise, Trade, and Employment Batt O’Keeffe insisted the 12.5% rate is “a constant”.

He reminded those who might suggest otherwise that Ireland secured a legally binding guarantee before the second Nice referendum that recognises that situation. If it became necessary to invoke that guarantee, so very soon after the Nice vote was passed, it would further undermine confidence in a Government already under tremendous pressure. It would also deepen the cynicism surrounding our political system.