10/11/2011

One of Northern Ireland's top tax experts has said that the region's politicians have a prime opportunity to bring down their corporation tax and start attracting revenue from foreign businesses and investment.

Eamonn Donaghy, who heads KPMG's tax division in Belfast, said that there has never been a better time to tie down a deal to cut the tax rate. He cited First Minister Peter Robinson's comments on Wednesday that he still wished for a 10 per cent corporation tax rate as evidence that the momentum is persistent and is not diminishing.

"Now is the time to get this done," Mr Donaghy said. "The Treasury are being instructed to look at this very closely and we need to tie a deal down. Peter Robinson is of the view this is the key economic lever for Northern Ireland to have."

The current rate of corporation tax in Northern Ireland is 26 per cent - the same as the rest of the UK - but in the neighbouring Republic of Ireland it is just 12.5 per cent.

A major meeting is due to take place next week between ministers from Westminster and Stormont, in which representatives including Deputy First Minister Martin McGuinness, Finance Minister Sammy Wilson and Enterprise Minister Arlene Foster, will argue the case for the province to take over tax-setting powers from Westminster.