OECD Praises Ireland For Taking 'High Road' In Tax Policy

by Jason Gorringe, Tax-News.com, Ireland

27 March 2003

Ireland's low tax regime has been the subject of high praise from the OECD as the organisation continues its investigation into the world's harmful tax regimes.

According to reports, Jeffrey Owens who heads the OECD's tax policy and administration unit, Ireland should be endorsed for taking the "high road" in taxation policy. This meant that the authorities had been promoting "fierce and fair" competition, as opposed to secrecy and opaque tax policies which are practiced by countries taking the "low road." Owens said that Ireland set a good example to other nations by being "relatively aggressive" when it comes to matters of taxation.

However, Owens was concerned by the large disparity between corporate and personal income tax, which he said could be a potential problem in the future.

The OECD is due to report some of the findings of its five year investigation later in the year. Owens foretold that the ultimate result of the OECD's efforts will be the elimination of harmful tax competition which would reduce compliance costs in years to come.

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