Press releases

Ireland needs to maintain a careful watching brief as BEPS action plan unfolds

Press Release

Lorraine Griffin, Head of Tax, Deloitte Ireland comments:

“While today is an important political milestone and a significant achievement for the OECD to get all countries to this point - all the heavy lifting has yet to be done. It is an ambitious statement of intent, setting out a pathway for the future taxation of multinationals.

The devil is in the detail when it comes to implementation, with a number of recommendations requiring countries to sign up to a multilateral instrument which has yet to be finalised and which will not be available until the end of 2016. A range of other measures will be left to the discretion of each country as to what changes, if any to adopt. There is still a lot to play for.

From an Irish tax perspective very little has changed as of today, given that the BEPS papers do not of themselves impose a tax charge or a change of law.  Ireland has an open and transparent tax system, with the low 12.5% corporate tax rate at its cornerstone. This rate provides certainty to multinational organisations located here and to those considering Ireland as an option. So in a period of continuing uncertainty you can see why Ireland remains an attractive option.

In Deloitte’s view Ireland needs to stay ahead of the curve, particularly as other countries change their tax systems and potentially become more competitive. Equally, as part of Ireland’s ongoing economic recovery, we need to ensure that export led growth by Irish business abroad is not unduly impacted. 

Ultimately, the BEPS project seeks to align the taxation of profits with where real economic substance and people are located – so personal taxation will become a more critical deciding factor to attract and retain business investment.” 

 

For Further Information Please Contact

Aoibheann O’Sullivan

Murray Consultants

01 498 0300

0876291453

aosullivan@murrayconsult.ie

 

Claire Quinn

PR Manager

Deloitte

01 417 2356

cquinn@deloitte.ie

About Deloitte 

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

 

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