Ireland, the European Union and the World investment.53 While European leaders have at times criticised Ireland’s substantially lower corporate tax rate and made references to fiscal harmonisation, this arrangement finally seems to be coming to an end. On 7 October 2021, the Irish government agreed to global tax reforms that would introduce a minimum corporate tax of 15%. 54 There are some caveats. The increase will not be introduced until 2023 and even then will only affect firms with a turnover above €750 million.55 However, this represents a fundamental shift in Irish tax policy. Even during the most stringent Troika-imposed austerity, corporate tax was considered non-negotiable by successive Irish governments.56 The fact that the Irish government has accepted an alteration, albeit a partial one, displays an irreversible move away from the status quo. It is a concession that Ireland must adapt to reforms amid an increasing belief that corporate tax is a global issue rather than one for national policymakers. While it remains to be seen how this change will affect Ireland’s ability to attract investment, the longstanding 12.5% corporate tax rate is finally coming to an end. Conclusion Ireland’s corporate tax regime is undergoing several developments that it will be unable to survive. The Ireland v Commission appeal before the Court of Justice may determine that its arrangement with Apple constituted state aid and cause the Irish state to unwillingly recoup €13 billion. Significantly, that would render several of Ireland’s tax rulings with US multinationals illegitimate. Meanwhile, the US has formulated a policy that would eradicate the ability of its multinationals to use states such as Ireland to allocate profits offshore. Finally, in signing up to the global minimum tax, Ireland is accepting that it must move beyond its most vital fiscal policy. While Ireland’s corporate tax regime may not be at an end just yet, it is nearing an inevitable defeat from either legislative or judicial means.
Boyu Wang, ‘After the European Commission Ordered Apple to Pay Back Taxes to Ireland: Ireland's Future in the New Global Tax Environment’ (2018) 25 Ind J Global Legal Stud 539, 544. 54 Department of Finance, ‘Ireland joins OECD International Tax agreement’ (7 October 2021) <https://www.gov.ie/en/press-release/59812-ireland-joins-oecd-international-tax-agreement/> accessed 15 January 2022. 55 ibid. 56 Julien Mercille and Enda Murphy, Deepening Neoliberalism, Austerity, and Crisis: Europe’s Treasure Ireland (1st edn, Palgrave Macmillan 2015) 60. 53
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