Corporation Tax Rate Statement
Thursday, 18 November 2010 Ireland's US multinational community is 100 per cent behind the Government on its commitment to holding Ireland's corporation tax rate at 12.5%. Corporation tax is critical to Ireland's economic recovery.
"The fiscal success of Ireland's corporate tax policy is clear. It has attracted leading multinational companies to Ireland and in the process has created hundreds of thousands of jobs that would otherwise have been lost not just to Ireland but to the EU as a whole. FDI accounts for €110 billion or over 70% of total exports in the Irish economy, 240,000 jobs (100,000 in US multinationals alone), 55% of corporation tax, €19 billion in direct expenditure, €7 billion in payroll costs and 73% of business spend on research, development and innovation" said Lionel Alexander, VP HP Manufacturing and President of the American Chamber of Commerce in Ireland.
Gerard P. Kilcommins, 1st Vice President of the American Chamber, Chair its Western Region, and the Global VP Vascular Operations & GM Galway Site of Medtronic Vascular Galway Ltd. said; "At this point in time the one bright spot on the economy is our multinational sector which has been sustaining jobs, driving our export growth and, through R&D investment, leading the development of the smart economy. The IDA secured 70 new investments in the first ten months of 2010. 20 of these from companies setting up operations in Ireland for the first time, 22 were expansion investments from existing client companies and 21 of the investments were in research and development. Corporation Tax was a key attraction in securing these investments for Ireland".
"Any increase in corporation tax will have a damaging impact on our ability to win and retain investment in Ireland. The simple truth is that Ireland's corporate tax rate is not the most competitive in the world. When we compete for jobs and investment we are competing not against the European Union, but against countries such as Singapore, Israel, India and China. When we win jobs, the entire European Union benefits. When we lose investment to these countries, the investment is lost not just to Ireland but to the European Union," said Bill Doherty, Executive Vice President, Cook Medical.
"The IMF, the European Central Bank and the European Commission must realise that any increase in our corporation tax rate would ultimately make us more economically dependent, not less so on our European Union partners", said Peter Keegan, CEO Merrill Lynch International Bank, and Country Executive, Bank of America Merrill Lynch.
Other leading executives supporting the views expressed above include: Eamonn Sinnott GM Intel Ireland & VP TMG Corporation; Dr. Neil Boyle, Managing Director MSD Ireland; Caithriona Hallahan, MD Microsoft EOC