Corporation tax - We cannot surrender on tax rate

JUST as, in another time, Irish republicans regarded England’s moment of difficulty as Ireland’s moment of opportunity there are those in Europe who, it seems, regard our economic collapse as an opportunity to try to force us to change our corporation tax rates.

They must think again.

This week’s Exchequer returns – just for the first nine months of the year – showed that we spend almost €13bn a year more than we collect in taxes. So, anything that might threaten these revenue streams must be opposed. The returns also showed that corporation taxes brought in more than €2bn, €235m more than expected at this point in the cycle. Corporation tax accounted for 10% of revenues, so the argument that the 12.5% rate damages revenues does not hold water.