While changes to international tax rules are likely to cost Ireland, “continued uncertainty and instability” poses a bigger risk, Minister for Finance Paschal Donohoe has said.
Speaking at a seminar on international taxation hosted by the Department of Finance, Mr Donohoe acknowledged that corporate tax reform at OECD level was likely to shrink Ireland’s corporate tax base by about 20 per cent or €2 billion a year.
“There are risks in an agreement, but the risks may be greater with continued uncertainty and instability if there is no agreement,” he said.
“There will be twists and turns in this negotiation over the months ahead and I think it is in everyone’s interests to have a balanced agreement,” Mr Donohoe said.
A major shake-up of the way corporation tax is collected internationally is on the horizon.
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