Taxand Ireland provides a review of Ireland’s corporate tax code.
On 2 September 2016, it was announced that the Government would appoint an independent expert to undertake a review of Ireland’s corporate tax code (the Review). Mr Seamus Coffey was appointed in October 2016. This was followed by a six week consultation period which ran from 21 February to 4 April 2017.
The Department of Finance has released the findings of this Review. Whilst the findings are broadly positive noting Ireland’s commitment to a transparent, fair and competitive corporate tax system, it nonetheless recommends a number of changes to the Irish corporation tax code. Whilst there is no legal obligation on the Government to enact any of the recommendations, given the political climate and the increased focus on company taxation, it is likely that some or all will be followed.
In launching the Review, Minister Donohoe stated: I welcome this comprehensive review which presents an overall positive message for our corporate tax code. The Review provides a clear road map and time frame for Ireland to implement important international reforms. It is important to note that the Review does recommend a period of consultation in advance of some of the suggested legislative amendments. This will be very important for companies, particularly in relation to the changes required as a result of the EU Anti-Tax Avoidance Directive (EU ATAD). EU ATAD requires, amongst other legislative amendments, the introduction of Controlled Foreign Company (CFC) legislation in Ireland for the first time.
Discover more: Review of Ireland’s corporation tax code
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In launching the Report, Minister Donohoe noted the recommendation for a detailed consultation process stating the consultation process recommended in the Review is important if we are to reduce uncertainty and have better-informed policy making. He announced that the consultation process would be launched on Budget Day. The next few years will undoubtedly see significant changes to our corporation tax code. However, the consultation period provides companies with an opportunity to provide input into the shape of the corporation tax system going forward.
