Ireland's comparatively high effective personal tax rates at average salaries and above have become a significant competitive disadvantage.
That’s according to the President of the Irish Tax Institute, who is also warning the Government must ensure Ireland is not undercut by the corporation tax regimes of competitor countries before a planned new global effective minimum tax rate comes into force.
In comments to the institute’s annual dinner this evening Karen Frawley will claim those working in international tax have already seen other states "sharpening their tax incentives and reliefs and pointing to their benefits as they bid to compete for investment against Ireland."
She will also say that Irish legislation has become increasingly complex in recent years with the layering of EU anti-tax avoidance rules on existing provisions.
"While these complexities keep the likes of me in work, simplification of our corporate tax rules would greatly strengthen our competitiveness," she will tell the gathering.
On the issue of personal taxes, Ms Frawley will also caution that comparatively high rates are eroding our competitiveness.
"Irish workers earning over €48,000 a year pay more income tax than workers in competitor countries, such as the UK, Switzerland and, the US," she will claim.
"And attracting talent to Ireland is now a key obstacle to growth in businesses and the wider economy."
However, she will also highlight the importance of having good quality public services when it comes to attracting investment.
"Availability of good quality housing, education, health services and public infrastructure are as important to the talented workers we want to attract to our country as they are to those of us who live here," she will say.
Paying for these services though will inevitably require higher taxes, she will suggest.
She will also urge the Government to remember the role played by business and the private sector in the economy through paying those taxes and creating employment.
"The role of Government is to foster an environment that continues to attract foreign investment, encourages domestic enterprise, and rewards work," Ms Frawley will tell the audience.
"Both of us need to deliver."
The dinner will be attended by Minister for Public Expenditure and Reform, Michael McGrath.
