Irish Finance Minister Accepts OECD's Increase of Irish Corporate Tax Rate
Douglas Stransky was interviewed by Sarah McInernay on the Irish radio program Drivetime on October 7, 2021, regarding the Finance Minister's decision to accept the OECD's increase of the Irish corporate tax rate from 12.5% to 15%. Ireland had been one of the few countries that pushed back on the OECD's proposal for a global minimum tax rate of 15%. These draft reforms have been brokered by the OECD among 140 countries, as part of a widespread agenda to modernize global tax rules, make them fairer and reduce the use of aggressive tax planning by some large multinational companies.
Many in Ireland expressed concern that an increase in Ireland’s corporate tax rate would result in U.S.-based multinationals leaving Ireland and would also result in fewer companies investing into Ireland. Doug’s comments addressed this concern, noting that U.S.-based multinationals are in Ireland because of its very favorable business climate, not just for a low tax rate. Of greater concern to Ireland, Doug noted, is the entire OECD proposal that would shift taxing rights to other countries and impact Ireland much more than an increase in its corporate tax rate.
Listen to the full interview here (Doug's portion starts at 11:16).