Entrepreneur Declan Ganley states Ireland needs to hold out against an international minimum business tax rate.
The Federal government is under pressure to sign up to a deal agreed by 130 OECD countries, that would set a corporate tax floor of 15%.
However efforts to raise the nation’s 12.5%rate have actually been long resisted.
Speaking in New York City on Monday, Taoiseach Micheál Martin stated he might not devote to the current rate staying as it is.
But he included that Ireland is “appealing in the OECD process in an useful way, and we desire certainty and we want continuity”.
While Tánaiste Leo Varadkar has actually said Ireland can not dedicate one method or the other on the issue.
He said: “I think we ‘d certainly prefer to be part of an international agreement.
” Ireland is not a tax haven nor do we want to be viewed as a tax haven.
” So we ‘d certainly choose to be part of a worldwide agreement – and definitely from my discussions the other day and in Paris a couple of weeks earlier, other countries want us in.
” However that offers us a little bit of take advantage of, a little bit of negotiating power”.
Mr Ganley told The Difficult Shoulder our low rate is something we are popular for.
” The truth is that our low corporate tax rate is something that Brand Ireland is famous for.
” You can like that or not like it, however I’m talking to you today from Washington DC – and when you’re at company occasions, wherever they are, it’s something that everybody understands and describes.
” So while it may not be the only thing – or the end thing – that brings in individuals to Ireland, it is the thing that everyone knows.
” It’s sort of a big, positive, selling point.”
” And the issue with the OECD drive is it is a drive to tax harmonisation around the globe, and tax harmonisation will be a disaster for economies like Ireland’s.
” We are not centrally located in a land mass, we’re not linked to rail networks – we have to develop competitive advantages in other ways.”
‘ Warranties against interference’
Mr Ganley states while the tax card “is not just card, it’s an ace – and we can not provide it up – in addition, it’s a secured ace”.
And he says Ireland was provided assurances in the Lisbon Treaty.
” Ireland was given warranties that there would be no disturbance in its tax affairs or sovereignty.
” That was ratified by the European Parliament a while after the referendum was passed.
” It was then validated by every member state parliaments of the European Union”.
Acknowledging the OECD is a various entity, Mr Ganley states: “The application is that we have assurances to safeguard and secure against interference of any kind from every member state of the European Union and from the EU itself.
” The point I’m making is … there have been all too frequent declarations and remarks made targeting Ireland’s tax competitiveness.”
And he believes Ireland should fight to keep its rate.
” If anyone believes that tax harmonisation is going to benefit the Irish economy, they are sorely incorrect.
” We need to keep this tool as a tool of our competitiveness.
” The fact that it looks like, or definitely there is a relocate to increase our business tax rates, is not something that originated in Ireland.
” It originated from individuals outside of Ireland, and I suggest that we require to fight much harder to protect our tax sovereignty, provided the competitive position that we are in.
” And we need to utilize every tool available to us to do that”.
OECD tax harmonisation ‘will be a disaster’ for Ireland – Ganley
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