Chartered Accountants Ireland makes case for NI devolved CT rate to Fiscal Commission

Chartered Accountants Ireland met the independent Fiscal Commission for Northern Ireland on Monday and made the case that a lower corporation tax rate will attract FDI, create high-value jobs and drive growth of local companies in Northern Ireland. The Institute has long advocated for a reduced rate of corporation tax for Northern Ireland and has renewed this campaign on foot of a recent survey of members showing that 2 in 3 support the activation of devolved CT rate setting powers. The Institute delegation, led by President of Chartered Accountants Ireland, Paul Henry, told the Commission that a lower CT rate for Northern Ireland would attract FDI which when combined with investment in lifelong learning and research capabilities, would lead to better jobs, with better wages and an improved quality of life for society in Northern Ireland. 

In a submission to the Commission which formed the basis of Monday’s meeting, the Institute set out that a reduced rate of corporation tax must be stable, and it should be guaranteed for at least ten years to make a sustaining economic impact in the region.  The Institute highlighted opportunities to renegotiate some aspects of a reduction to the Block Grant noting that Northern Ireland would need support from Westminster in the short-term to allow the economic gains of a reduced rate to take effect.  The Institute favours the devolution only of corporation tax rate setting powers for Northern Ireland as a lever for enhancing Northern Ireland’s economic prosperity.  The Institute also highlighted the need for a cohesive strategy to develop high-value skilled jobs as part of a lower corporation tax rate offering for Northern Ireland.

The Fiscal Commission was established to carry out a comprehensive review of the case for increasing fiscal powers available to the Northern Ireland Assembly.  It will issue an interim report later this year and plans to present the final report to Minister of Finance, Conor Murphy, in 2022.  The Institute delegation was led by President Paul Henry, Chair of the NI Tax Committee Alan Gourley, and Norah Collender and Crona Clohisey of the Institute’s Advocacy & Voice team.  Chartered Accountants Ireland issued a press release following the meeting with the Commission.