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Christian Aid welcomes publication of Irish Corporation tax review as a small but important step in the direction of tax justice

12 September 2017 - Christian Aid today welcomed the publication of the review of Irish Corporation tax, calling it a small but important step in the direction of tax justice.
 
'The government deserves credit for conducting this review, and while it is short on elements that could be viewed as tax justice, as a first step in reforming Irish corporation tax regulation, this may ultimately prove to have been a valuable exercise,' said Sorley McCaughey, Head of Advocacy and Policy.  

The charity worked closely with Minister Zappone at the time of the Apple ruling and praised the review’s focus on Ireland’s intellectual property regime, which according to the charity, in recent years has become a spectacular source of tax avoidance for multinational companies.

'The review is right to highlight Ireland’s IP regime. Research that we will publish next month will show that changes made in 2014, providing greatly expanded tax breaks for intellectual property income, have seen an increase in capital allowances for intellectual property of almost 1,000% between 2014 and 2015, as companies moved to onshore their IP to places like Ireland,' McCaughey said.

'The Department of Finance estimated at the time that this would result in foregone Irish corporation tax of some €27million a year. However, our research shows that assuming the full tax benefit could be realised in one year, would result in potential foregone revenue of €3.3bn in 2015 alone.

'Reputationally this has the potential to be as damaging as the notorious Double Irish avoidance, which is to be phased out by 2021,' McCaughey said.

'Without making changes to the current IP regime, the government runs the risk of being accused of having replaced one major tax avoidance scheme, the Double Irish, with another.' 

Sorley McCaughey is available for comment on 087 062 0062. 
 

ENDS

For media queries:

Sorley McCaughey, Head of Policy and Advocacy
Tel: 087 062 0062

Meabh Smith, Head of Communications
Tel: 087 20 68483

Tess Purcell, Marketing and Communications Officer
Tel: 087 666 7808

 

 

Notes to editors: 

  1. Christian Aid works in some of the world's poorest communities in around 40 countries at any one time. We act where there is great need, regardless of religion, helping people to live a full life, free from poverty. We provide urgent, practical and effective assistance in tackling the root causes of poverty as well as its effects.

  2. Christian Aid is a member of the ACT Alliance, a global coalition of more than 130 churches and church-related organisations that work together in humanitarian assistance, advocacy and development. 

  3. Follow Christian Aid Ireland on Twitter @christianaidirl

  4. For more information about the work of Christian Aid Ireland visit www.christianaid.ie
     

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