May we start by acknowledging the historic supports for Irish businesses in Budget 2021. These financial and taxation supports are substantial and forward thinking and will do a lot to help Irish businesses get through the pandemic crisis.

Ireland’s commitment to our 12.5 percent corporation tax rate is extremely important to domestic and international businesses located in Ireland and we commend your assurances on Tuesday last week that Ireland remains committed to the 12.5 percent rate. In these difficult times, a consistent taxation environment is highly valued by all businesses, large and small, operating in Ireland.

The sudden change to the Intangible Asset Allowance regime as announced on Budget Day was at odds with Ireland’s thoughtful approach to messaging our corporation tax policy. Corporation tax changes implemented with effect from Budget night are usually associated with anti-tax avoidance measures and the change to the Intangible Asset Allowance regime is clearly not an anti-tax avoidance measure. It would have been helpful if the business community had been given an opportunity to consult before changes were made to the Intangible Asset Allowance regime for the purposes of maintaining consistency in how Ireland manages tax policy.

In your speech you noted that the amendment to the Intangible Asset Allowance regime is not expected to result in significant additional tax revenue. It may however have negative implications for Ireland as a location for intangible assets and the job creation opportunities which accompany intangible assets.

We fully understand the pressures facing Ireland’s corporation tax policy but one of Ireland’s biggest strengths is the Government’s careful management of corporation tax policy and the manner of the recent change to the Intangible Asset Allowance regime may be interpreted in a negative light by international businesses.