Ireland will resist global corporate tax rate, says finance minister

SourceThe Guardian
SectorEconomy
CountryMiddle east

Ireland’s finance minister has signalled the country will resist attempts to rebalance the global tax system if they affect Dublin’s ability to undercut its rivals.Under new tax proposals led by the US, Ireland could lose 20% of its tax revenues, according to Paschal Donohoe.He said he would support a global agreement that allowed “appropriate and acceptable tax competition” between states, as momentum grows for an agreement to prevent Ireland and others from attracting others with dramatically lower effective tax rates.The global tax system has failed to adapt to the rise of digital services across borders in recent decades, and critics argue that the lack of harmonised rules has triggered a “race to the bottom” on global tax.Attempts to fix the system and prevent multinational companies from choosing an advantageous tax jurisdiction were previously stymied by the US, home of tech companies such as Apple, Google’s owner Alphabet and Microsoft, which were among the beneficiaries.Under Joe Biden, however, the White House...read more...