Chartered Accountants Ireland, under the auspices of the CCAB-I, responded to the Government’s public consultation on the impact of the OECD’s tax reform proposals. The CCAB-I warned that Ireland will lose sovereignty over corporation tax under Pillar Two proposals. Ireland’s ability to compete for FDI investments will also be negatively impacted by Pillar Two proposals and this could have serious consequences for job creation in Ireland.

The CCAB-I points out that while the fact that Ireland had not signed up to the Inclusive Framework is not good for the country’s reputation, experience suggests that Ireland’s FDI tax policy will always be questioned for as long as the country is successful in attracting FDI. Pillar Two proposals mean that Ireland will be subject to a tax rate set by large countries like the US, Germany, and France. If blocked from using 12.5 percent corporation tax to compete for FDI, then over time Ireland risks losing established high value jobs associated with FDI and future job creation flowing from FDI investment.