AmCham Boss Lobbies Irish Government Over Corporate Tax Rate

by Jason Gorringe, Tax-News.com, London

14 February 2003

Speaking to the Irish Independent this week, the new president of the American Chamber of Commerce in Ireland urged the government to secure the 12.5% corporate tax rate before its removal can be recommended in Europe.

Austin McCabe warned that in light of the fact that the Convention on the future of the EU could recommend the abolition of the unanimity rule on direct tax decisions after enlargement: 'It is crucial that we remove uncertainty in the Irish market. And it will be one of my priorities as president of the Chamber to lobby on this issue.'

Mr McCabe also stressed the need for continuous investment in physical infrastructure in order to attract and retain multinational companies. At present, 570 US companies employ more than 90,000 people in Ireland, and foreign direct investment from the United States accounts for over 34 billion euros.

However, according to the Irish Independent:

'Mr McCabe also said that there must...be a concerted effort made to stimulate and support multinational companies already located in Ireland to move their activities up the value chain.'

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