Government plans to reduce corporation tax for SME’s questioned – Quinlivan
Sinn Féin spokesperson for Jobs, Enterprise and Innovation Maurice Quinlivan TD has expressed concern about Government plans to lower the corporation tax rate for small companies to 6.25%. Speaking during debate at the Oireachtas Jobs Committee on the Knowledge Development Box Bill 2016, Deputy Quinlivan said:
“This Bill which is aimed at small companies will reduce corporation tax to a rate of 6.5% on profits from intellectual property resulting from research and development.
“I am perplexed by legislation which seeks to reduce corporation tax at a time when this issue is under increased scrutiny both at home and abroad.
“Internationally and particularly at European level there is growing consensus that corporations must pay their fair share of taxation – and that to date they have not done so.
“I find this bill very odd and, quite frankly, I suspect it is merely a mechanism to open another loophole whereby corporations can avoid paying a just rate of tax.
“It is unclear what the point of this legislation is and why SME were not included in the Finance Bill 2015.
“I am also worried about the confidentiality provisions in the legislation as their inclusion poses serious obstacles to accountability and transparency.”