Wednesday, May 28 14:55:06
Ireland's effective 9pc corporate tax rate is by far the lowest in Europe but is not delivering on investment, tax receipts and jobs as economies with higher tax rates.
That's according to trade union Unite, who today presented a submission to the Oireachtas Joint Sub-Committee on Global Taxation.
In it, the union pointed out that, at just 9pc, Ireland's effective tax rate is the lowest of all advanced European economies and less than half the average figure of 24pc.
The union also pointed out that Ireland's current corporate tax is failing to deliver investment and tax revenue when compared to our peer group in the EU.
Commenting on Unite's findings, Regional Secretary Jimmy Kelly said: "We need a corporate tax structure that is fit for the 21st century - one that can deliver jobs, investment and tax revenue to the economy. In many areas it is increasingly clear that our current tax structure is not delivering".
Presenting the submission to the sub-committee, Unite researcher Michael Taft said: "If the aim of our low corporate tax rates is to encourage business investment, it is not as successful as other economies in our peer group. Other small open economies have much higher tax rates than Ireland, much higher levels of corporate investment and much higher levels of employee compensation."
"With increasing international scrutiny of our corporate tax structure it is imperative that we do not sleepwalk into another crisis - just as we did with the property bubble. We must face up to the reality and adapt to the changing environment,” Mr Taft added.