The American Chamber of Commerce in Ireland has issued a strongly-worded statement calling on the Taoiseach to "categorically rule-out" any increase in the country's corporation tax rates and to "clearly and firmly" remind the EU that Ireland retains sovereignty in taxation matters.
The group, which represents 600 US companies operating in Ireland, issued a statement this evening following comments earlier today by EU commissioner for economic and monetary Affairs Olli Rehn in which he said Ireland would no longer be a low-tax country.
Lionel Alexander, president of the American Chamber of Commerce in Ireland said: “At a time when the economy is in deep recession, nothing which would impact on the continued investment in Ireland by our existing base of multinationals, or would deter new investment in Ireland can be countenanced".
He called on Taoiseach Brian Cowen to send "a very clear message" that there will be no increase in Irish corporation tax rates.
Mr Alexander said US companies have invested over €165 billion in Ireland and, in 2008, paid 40 per cent of the total corporate tax take.
“This is a very serious issue. We have to realise that we are still way out of line in terms of our cost competitiveness and Ireland’s competitive corporation tax rate is one of the few competitive advantages we have," Mr Alexander said.
US companies, which export over €90 billion worth of products from Ireland, who do not see Ireland as a "compelling location" will locate "elsewhere", Mr Alexander insisted.
“The Government must clearly and firmly remind the EU Commission that Ireland retains sovereignty in taxation matters and advise Commissioners to refrain from making unhelpful comments of this nature”.
