The previous post on EU corporation tax revenues reminded me of an article for The Irish Times that was published in the Friday business section about a month ago. I don’t think it was available online and was based on this post. Here is a scan of the piece and the text is reproduced below.
Increasing headline rate of corporation tax will do little to unravel ‘Double Irish’
Ireland's headline rate of corporation tax is 12.5% despite some pressure to increase it. Such pressure seems to have been successful in getting Cyprus to increase its corporate tax rate as part of its EU/IMF programme and now only Bulgaria has a lower corporate tax rate in the EU than Ireland.
However, it is not necessarily the headline rate but the calculation of the tax base that is the most important feature of the Irish corporate tax regime.
Recent data published by the Revenue Commissioners show that, in 2010, companies in Ireland reported an aggregate gross profit of just over €70 billion. On these profits, companies paid €4.2 billion which gives an average effective tax rate of 6%.