Sarkozy’s corporation tax argument is bogus and misleading

 

Peter Mathews read into the record of the Dáil that effective corporation tax rates in EU countries are lower than Ireland’s:

 

Lithuania 0%

Luxembourg 4.1%

Bulgaria 4.6%

Belgium 4.8%

Latvia 6.5%

Slovak Republic 7%

Czech Republic 7.4%

Estonia 8%

France 8.2%

Cyprus 9.4%

Romania 10.4%

 

“Ireland is honest about our corporation tax rate. It does exactly what it says on the tin. The headline rate is 12.5% and the effective rate is 11.9%.

 

“France is one of the most dishonest countries when it comes to corporation tax. They claim to have a penal corporation tax rate of 34.4%. However, through the use of accountancy scams, French businesses write-off three quarters of their corporation tax. French businesses end up paying only 8.2% corporation tax. This is far lower than Irish businesses.

“For every €100 million that French companies pay in corporation tax, Irish companies pay €145 million.

 

“It is devious and dishonest of Nicholas Sarkozy to call for an increase in Ireland’s corporation tax rate. He is trying to victimise Ireland for being honest about the taxes we charge businesses. He is using Ireland’s misfortune as an excuse to poach Microsoft and Intel from Ireland

 

“This flies in the face of the founding principles of the European Union. There should be solidarity between member states in times of crisis. Instead Sarkozy is trying to kick Ireland when we are down. This is approach is un-European. I am calling on President Sarkozy to withdraw his requests for an increase in Irish corporation tax.”