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George Osborne changes corporation tax to stop firms moving overseas Watch

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    (Original post by yawn)
    I believe Ireland had the lowest corporation tax at 12.5% prior to Osborne's change.

    The EU were trying to make it a condition of their loan to Ireland that they reduce it, as it made it impossible for any other EU country to compete with them. Ireland refused, and Osborne raised the stakes.

    We'll have to wait and see if Germany or France follow Osborne and jump on the competitive wagon by reducing the tax to even lower levels. Corporation tax could well end up being removed totally by an EU country.
    Surely the EU wanted Ireland to increase not reduce their headline corporate tax rate?
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      (Original post by DJKL)
      Surely the EU wanted Ireland to increase not reduce their headline corporate tax rate?
      Oops...sorry...a typo, as is evident from the rest of the sentence.

      Ireland's corporation tax has been levied at 12.5% for many years...they are not going to either reduce or increase it because it has proved to be very effective in attracting international businesses to set up and invest in Ireland.

      Because of it's success, the EU tried to pressure Ireland into raising it so as other EU countries could compete. However, the loan that has been given to Ireland by the EU was obviously not conditional on raising the tax...and Ireland would not have reduced it anyway, knowing full well that the EU's need to raise the loan was greater for EU member states' own long-term interests anyway.
     
     
     
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