Chartered Accountants encourage devolution of tax powers to the Northern Ireland Executive (24th June 2011)

Chartered Accountants Ireland and Chartered Accountants Ulster Society have made a joint response to the HM Treasury consultation on Rebalancing the Northern Ireland Economy.

Announcing the publication of the response, Chartered Accountants Ulster Society chairman Mr Michael Black said:

“We have promoted debate on the reduction in corporation tax as an economic stimulus for the province in recent times.  We therefore welcome the Treasury Consultation on the devolution of power to set Corporation Tax rates to the Northern Ireland Executive. 

“In our response to the Consultation, we set out why we think that a reduced rate of Corporation Tax for Northern Ireland would be good both for indigenous businesses and for our prospects of attracting foreign direct investment.  The costs for the Northern Ireland Executive are manageable.  We make suggestions as to how the costs can best be managed, for example by applying the reduced rate of Corporation Tax to trading income only and not investment income.”

Chairman of the Chartered Accountants Ireland Tax Committee Mr Eamonn Donaghy commented:

“Chartered Accountants Ireland is an all island organisation.  In our response to HM Treasury, we have been able to bring our tax experience both North and South to the issues.  From our research we are confident that a proper implementation of a reduced Corporation Tax rate, carried out in accordance with constitutional and EU requirements, will bring benefits of business stability and new investment opportunities.

“A reduced rate of corporation tax in Northern Ireland will not be a ‘silver bullet’ answer to rebalancing the NI Economy, however it will be an essential ingredient to the growth of the private sector”

The response of Chartered Accountants Ireland and Chartered Accountants Ulster Society is available HERE