Lisbon: Warning on corporation tax
Tuesday, 20 May 2008 19:07
A senior economist has said that if Ireland ratifies the Lisbon Treaty, the country's low level of corporation tax will be eliminated within a matter of years.
Ray Kinsella - Professor of Banking and Financial Services at UCD - said the treaty posed a 'clear and present danger' to Ireland's tax regime.
Mr Kinsella said there was very compelling grounds for believing that, if passed, Ireland's current rate of 12.5% would be 'harmonised out of existence' in the short term.
While acknowledging that Ireland would retain a veto over tax affairs, he said 'real politic' would ultimately lead to tax harmonisation.
He said the larger countries such as France, Germany and Britain had a vested interest in finding a way around the veto.
He said a 'No' vote could ensure that Ireland's tax regime would be protected for 10 years.
- Business Today: Ray Kinsella, Professor of Banking and Financial Services at UCD, says he is voting No in the treaty referendum next month.
- Business Today: In response, Brendan Butler of IBEC says that three of the current member states have a lower corporation tax rate than Ireland and they are all ratifying the treaty.
