The Irish Fiscal Advisory Council (Ifac) has warned the Government that its budgetary forecasts “lack credibility” and are inconsistent with future spending commitments. It also said the Government was “painting too rosy a picture” of future tax revenue and underestimating the likely decline in corporation tax receipts arising from proposed changes to the global tax system. Corporation taxThe council said there are significant risks to corporation tax receipts. The Government has assumed a gradual €2 billion reduction in corporation tax receipts up to 2025 as a result of global reforms. But a scenario considered in Ifac’s report shows how just five firms exiting Ireland could result in €3 billion of lost corporation tax receipts.

Source: The Irish Times May 26, 2021 00:00 UTC