Ireland must defend our competitive Corporation Tax rate
As a small open economy on the periphery of Europe, Ireland must remain a competitive place to do business. Our industrial policy needs to ensure that Ireland remains an attractive location for multinational companies and a competitive environment for small and medium sized enterprises (SMEs). The 12.5 % corporation tax rate is a vital ingredient in attracting and creating jobs in Ireland.
Fianna Fáil’s plan to maintain competitiveness
Defend Ireland’s 12.5% Corporation Tax Rate
Under the Lisbon Treaty it is enshrined that corporation tax policy is for sovereign Member States to decide. We support Ireland’s right to set our own tax rate.
Oppose the European Commission’s efforts to consolidate tax
Oppose and if necessary veto the Common and Consolidated Corporate Tax Base policy as currently put forward by the European Commission.
Oppose the proposed EU Digital Tax policy
Oppose and if necessary veto the Digital Tax policy as put forward by other Member States. This would represent tax harmonisation by the back door and reward larger countries. Instead we must focus on the OECD BEPS programme.
Constructive engagement on BEPs project
Engage constructively with European partners and the OECD in relation to the Base Erosion and Profit Shifting (BEPs) project.
Help SMEs to grow
Introduce a tax structure that helps SMEs grow and create jobs. Current schemes like the Key Employee Engagement Programme and the Employment Incentive and Investment Scheme are overly complex and need to be reformed.
Reform the Capital Gains Tax regime for SMEs
The current high rate of Capital Gains Tax makes Ireland less attractive for investment and prohibits SMES from trying to get the finance to grow. We will reform this system to make it more competitive.
Increase entrepreneurial relief limit
Raise the entrepreneurial relief needs to be raised from the current €1 million to make it more competitive with other countries.
Reform the Tax Appeals Commission
It is critical that Ireland is seen to have a transparent and consistent taxation system. The Tax Appeals Commission must be reformed.