Kevin Doyle comments on The Sunday Times article
11 September 2018
‘Finance fudge puts lucrative corporate tax regime at risk’ – Kevin Doyle comments on The Sunday Times article
"In principle they can apply to all Irish companies that have foreign subsidiaries, even start-up businesses that decide to set up a small sunsidiary in the US or elsewhere in oder to grow their busimess," said Kevin Doyle, international tax partner a BDO.
The taxation of dividends paid by these subsidiaries can impose an expensive administrative burden, especially for small businesses, requiring them to claim a credit for taxes paid abroad when calculating their liability for charges in Ireland. This burden could be eliminiated if the dividends were simply exempted from tax in Ireland: "It would remove a level of complexity that comes with the tax credit regime currently operating in Ireland," said Doyle.
"It may mean a small reduction in tax yield for the exchequer in the short term but there would be a lot less complexity for business and an increase in Ireland's attractiveness as a location for foreign investment."
Adapted from the Sunday Times Article 'Finance fudge puts lucrative corporate tax regime at risk’ by Niall Brady. Published 09 September 2018.