IFAC: Tax windfalls offer opportunity to deal with future pension costs
Fiscal watchdog estimates €11.5bn of Irish corporation tax collected last year was generated by the worldwide activities of multinational companies with bases here
Multi-billion euro windfalls from excess corporation tax offer Ireland a “huge opportunity” to deal with surging pension costs for future generations, a fiscal watchdog has said.
The Irish Fiscal Advisory Council (IFAC) has highlighted the potential benefits of diverting the tax income generated by major multinationals into a long-term investment vehicle.
Appearing before an Oireachtas committee, council members also reiterated a warning against using the windfalls to fund permanent tax and spending commitments in the present day, cautioning that such a move risked overheating the economy, echoing concerns flagged by the Central Bank yesterday.