Richard Bruton, enterprise minister, is back in the US to reassure investors on the Irish corporate tax regime but apart from the certainty of the headline rate of 12.5%, the ongoing reform process at global and European level suggests that uncertainty will prevail for sometime.
Bruton is on a trip to the West Coast in particular Silicon Valley and the Mid-West, just weeks after visiting East Coast cities where he implausibly claimed “very positive feedback” for the planned abolition of the 'Double Irish' tax dodge that has saved some American companies billions of dollars in tax payments over the years.
What is self-evident is the mindset of relying on ready-made American jobs remains dominant among policy makers with the indigenous sector - requiring vision, smarts and time - playing its traditional second fiddle role.
We reported Wednesday that Germany and the UK have agreed to restrict so-called patent box incentives including low corporate tax rates, for projects where there is substantial research and development (R&D) done in a country.
Ireland plans to announce intellectual property (IP) incentives in 2015 to be termed a 'knowledge development box' and the European Commission will likely propose a system for the EU similar to the Anglo-German agreement.
Dublin Web Summit 2014: Separating hype and reality - includes an analysis of Irish enterprise policy.
We report today that on Wednesday Jean-Claude Juncker, European Commission president, proposed an acceleration of tax reform in the EU while the final proposals of the G20/OECD BEPS (Base Erosion and Profit Shifting) Project will be published by end 2015.
The IDA Ireland mission to Silicon Valley, San Francisco, Los Angeles, Minneapolis and Chicago, involves a total of 22 meetings and events.
Bruton's Department said this is his "24th major investment/trade mission since his appointment 44 months ago."
It's time he also focused on addressing the flaws in his enterprise policy:
Related tax links
OECD BEPS Project submission from Finfacts: Ireland should embrace corporate tax reform - - includes analysis of underperforming indigenous tradable sector.
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