Chartered Accountants Groups Support Devolution of Corporation Tax Powers to Northern Ireland (23rd Sept 2010)

In their written response to the inquiry of Northern Ireland Affairs Committee at Westminster into Corporation Tax in Northern Ireland, Chartered Accountants are clear on the potential benefit of Northern Ireland having control of its Corporation Tax Policy.

The response was provided by Chartered Accountants Ulster Society and Chartered Accountants Ireland, who have already been prominent in the debate concerning a 12.5% rate of Corporation Tax for the province.

Chairman of the Northern Ireland Tax Committee Mr Eamonn Donaghy commented:

“The proposal to reduce the rate of corporation tax is a central plank of a strategy now required to rebalance the Northern Ireland economy and address the significant growth required in the private sector of our economy.  We advocate that devolving corporation tax varying powers from Westminster to the Assembly with provide a vital economic lever to growing both foreign direct investment and local businesses”

Chairman of the Ulster Society Mr Richard Gardiner said: 

“We welcome the opening of this inquiry as part of a wider exercise by Government to rebalance the Northern Ireland economy which together with possible mechanisms for changing the corporation tax rate would also include examining proposals for economic enterprise zones and other economic reform options.” 

Chartered Accountants have already contributed to the deliberations of the Northern Ireland Affairs Committee, and presented evidence at a Committee hearing in February 2008. 

“Chartered Accountants Ireland and the Ulster Society are committed to playing our part in creating a sustainable and successful economy in Northern Ireland and we are willing to offer the expertise and experience of our membership in assisting with any aspect of economic development” Mr Gardiner concluded.

NOTES FOR EDITORS 

The Northern Ireland Affairs Committee is to carry out an inquiry into Corporation Tax in Northern Ireland.  The Committee notes that there has been a continuing debate around the different corporation tax rates between Northern Ireland and the Republic of Ireland for several years.  

Their statement mentions that “The Chancellor has announced that he plans to reduce the main rate of corporation tax in the UK from 28% to 24% over the next four years. He further announced that he would review measures to rebalance the NI economy including consideration of mechanisms for changing the corporation tax rate. The rate in the Republic of Ireland is 12.5%.”