Image: Shutterstock/ajcabeza Image: Shutterstock/ajcabeza FINANCE MINISTER PASCHAL Donohoe was urged not to make any changes to a special tax deal available to high-earning executives ahead of this year’s Budget.
A pre-Budget submission by Business Minister Heather Humphreys to the finance minister, obtained by TheJournal.ie and its investigative platform Noteworthy under the Freedom of Information Act, shows that Donohoe was urged not to make any changes to the scheme. It is understood that the Exchequer lost out on €28.1 million in tax in 2017 due to the scheme, which has benefitted 1,084 employees.
In the documents, the IDA argued the scheme was crucial in attracting certain types of investment to Ireland which in turn helped fuel the high levels of corporation tax that the state depends on. That final suggestion was acted on by the Department of Finance amid concerns some executives – who had signed up when no cap was in place – would be hit with unforeseen tax bills.
“The importance of corporation tax to the exchequer receipts has never been higher nor has there even been more uncertainty as to the future direction of international taxation and the taxing rights of profits,” Humphreys says.
Ffs. Scrap the bloody thing