Ireland will resist global corporate tax rate, says finance minister

Ireland will resist global corporate tax rate, says finance minister

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.New tax proposals led by the US could see the country 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 has made proposals to break the deadlock, including a global minimum corporate tax rate of 21% of profits and allowing countries to charge some tax based on the location of sales.The changes could prove dramatic for Ireland, a