Global tax deal threatens €4.5 billion worth of Ireland’s corporate tax

New OECD rules which come into effect next year, aim to stop tax responsibilities being shifted between countries and introduce a 15 per cent tax rate for large multinationals

Michael McGrath TD, Minister for Public Expenditure & Reform: the Department of Finance modelled the range of potential impacts from the OECD rules. Picture: Fergal Phillips.

As much as €4.5 billion-worth of Ireland’s corporate tax base is now at risk from the implementation of a global tax deal, more than double the €2 billion it was estimated at three years ago. The new rules, which were formulated by the OECD, are due to come into effect next year.

While €4.5 billion is at the upper range of what could be lost according to internal modelling by the Department of Finance, it ...