Menu
03/06/2011
Corporation Tax 'Con' Highlighted
The debate over a possible reduction in NI's rate of corporation tax to better match that of the Irish Republic is continuing with a NI House of Lords independent crossbencher saying the public is being "conned" by the pro-tax cut campaigners.
The former Ulster Unionist and current Press 'baron', John Taylor [Lord Kilclooney] claimed that "95% of the population of Northern Ireland who are not company directors would be worse off" if the mooted reduction is implemented.
Mr Taylor, (pictured) told the House of Lords that a recent report by the Treasury said cutting corporation tax could mean a fall in the block grant of up to £300m a year in order to drop the current rate of 28% to one closer to the 12.5% in the Republic.
As the head of the Alpha Group, a thriving newspaper business based in Co Tyrone, he said there were other factors which would dictate where a company might set up, such as labour costs, energy costs and availability of skilled labour.
Speaking on BBC NI this morning, he reiterated an example from the Irish Republic and said: "Dell withdrew several thousand jobs from the Republic, albeit with a 12.5% corporation tax rate to relocate in Poland, with a 19% corporation tax and more recently HP - the USA technology giant with plants in Galway, Leixlip and Belfast - opted to select Belfast with its higher corporation tax as its new global centre of software excellence."
He insisted that claims that a low rate of tax would create 90,000 new jobs, over 20 years was not realistic and slammed the NI Secretary of State, Owen Paterson and what he described as a Sinn Fein/DUP partnership for blindly supporting the plan which would see NI's block grant severely reduced.
He said the jobs estimate was: "At best, wishful thinking" and that a reduced block grant from the Treasury to Stormont "will hurt the 95% of Northern Ireland people who are not company directors".
Lord Kilclooney said politicians "should be on the side of the ordinary people - the majority in Northern Ireland - and expose the risk of a lower corporation tax".
The peer also accused Mr Paterson of being motivated by a desire to ensure the Treasury saved money on Northern Ireland through a cut in the block grant and hinted at a concerted plan to 'hoodwink' the population.
"Interestingly, the three daily newspapers in Northern Ireland carried identical statements from six business spokesmen - i.e., all supplied to each paper from the one source - in order to con the wider population."
Supporters
Both the DUP and Sinn Fein have been vocal in their backing for a cut in the rate of tax on businesses to aid inward investment.
However, just this week, the Sinn Fein Enterprise Spokesperson, Phil Flanagan, an MLA for Fermanagh & South Tyrone has urged caution.
He said that any potential reduction to the level of tax must not be done in isolation but must be considered as part of a wider economic regeneration programme.
Speaking at the Enterprise, Trade & Investment Committee meeting in Stormont, Mr Flanagan said: "The possible transfer of corporation tax powers to the Assembly has largely been welcomed by the business sector.
"However such an eventuality should not be viewed as a panacea for all our economic woes. It must be considered only as one piece of the recovery jigsaw.
"In conjunction with a reduction in corporation tax, there needs to be a focus on a job creation strategy that will ensure people are adequately skilled for future opportunities," he said.
Noting that the NIO Secretary of State, Owen Paterson was in Enniskillen earlier this week speaking with the local business community, the MLA said Mr Paterson received a wide range of views on corporation tax.
"As a representative for a rural constituency, I will work to ensure that any potential reduction in corporation tax will have a beneficial effect for those indigenous businesses in my constituency as well as the direct investors based largely around greater Belfast," he concluded.
However the two main NI parties are not alone in supporting change with, Mike Nesbitt, an Ulster Unionist Party (UUP) member of the Assembly's Enterprise, Trade & Investment Committee also backing a revision, saying: "The UUP calls for the power to vary corporation tax to be devolved to the Northern Ireland Assembly."
See: NI Corporation Tax Amounts 'Unknown'
(BMcC/GK)
The former Ulster Unionist and current Press 'baron', John Taylor [Lord Kilclooney] claimed that "95% of the population of Northern Ireland who are not company directors would be worse off" if the mooted reduction is implemented.
Mr Taylor, (pictured) told the House of Lords that a recent report by the Treasury said cutting corporation tax could mean a fall in the block grant of up to £300m a year in order to drop the current rate of 28% to one closer to the 12.5% in the Republic.
As the head of the Alpha Group, a thriving newspaper business based in Co Tyrone, he said there were other factors which would dictate where a company might set up, such as labour costs, energy costs and availability of skilled labour.
Speaking on BBC NI this morning, he reiterated an example from the Irish Republic and said: "Dell withdrew several thousand jobs from the Republic, albeit with a 12.5% corporation tax rate to relocate in Poland, with a 19% corporation tax and more recently HP - the USA technology giant with plants in Galway, Leixlip and Belfast - opted to select Belfast with its higher corporation tax as its new global centre of software excellence."
He insisted that claims that a low rate of tax would create 90,000 new jobs, over 20 years was not realistic and slammed the NI Secretary of State, Owen Paterson and what he described as a Sinn Fein/DUP partnership for blindly supporting the plan which would see NI's block grant severely reduced.
He said the jobs estimate was: "At best, wishful thinking" and that a reduced block grant from the Treasury to Stormont "will hurt the 95% of Northern Ireland people who are not company directors".
Lord Kilclooney said politicians "should be on the side of the ordinary people - the majority in Northern Ireland - and expose the risk of a lower corporation tax".
The peer also accused Mr Paterson of being motivated by a desire to ensure the Treasury saved money on Northern Ireland through a cut in the block grant and hinted at a concerted plan to 'hoodwink' the population.
"Interestingly, the three daily newspapers in Northern Ireland carried identical statements from six business spokesmen - i.e., all supplied to each paper from the one source - in order to con the wider population."
Supporters
Both the DUP and Sinn Fein have been vocal in their backing for a cut in the rate of tax on businesses to aid inward investment.
However, just this week, the Sinn Fein Enterprise Spokesperson, Phil Flanagan, an MLA for Fermanagh & South Tyrone has urged caution.
He said that any potential reduction to the level of tax must not be done in isolation but must be considered as part of a wider economic regeneration programme.
Speaking at the Enterprise, Trade & Investment Committee meeting in Stormont, Mr Flanagan said: "The possible transfer of corporation tax powers to the Assembly has largely been welcomed by the business sector.
"However such an eventuality should not be viewed as a panacea for all our economic woes. It must be considered only as one piece of the recovery jigsaw.
"In conjunction with a reduction in corporation tax, there needs to be a focus on a job creation strategy that will ensure people are adequately skilled for future opportunities," he said.
Noting that the NIO Secretary of State, Owen Paterson was in Enniskillen earlier this week speaking with the local business community, the MLA said Mr Paterson received a wide range of views on corporation tax.
"As a representative for a rural constituency, I will work to ensure that any potential reduction in corporation tax will have a beneficial effect for those indigenous businesses in my constituency as well as the direct investors based largely around greater Belfast," he concluded.
However the two main NI parties are not alone in supporting change with, Mike Nesbitt, an Ulster Unionist Party (UUP) member of the Assembly's Enterprise, Trade & Investment Committee also backing a revision, saying: "The UUP calls for the power to vary corporation tax to be devolved to the Northern Ireland Assembly."
See: NI Corporation Tax Amounts 'Unknown'
(BMcC/GK)
Related Northern Ireland News Stories
Click here for the latest headlines.
24 October 2024
100 Days Left To File Your Self Assessment Tax Return
The clock is ticking for taxpayers who file Self Assessments. HM Revenue and Customs (HMRC) is reminding everyone that they have just 100 days left to submit their return and settle any tax owed before the January 31st deadline. For those who haven't started yet, HMRC offers a wealth of information and guidance on GOV.
100 Days Left To File Your Self Assessment Tax Return
The clock is ticking for taxpayers who file Self Assessments. HM Revenue and Customs (HMRC) is reminding everyone that they have just 100 days left to submit their return and settle any tax owed before the January 31st deadline. For those who haven't started yet, HMRC offers a wealth of information and guidance on GOV.
23 January 2024
HMRC Issues Self Assessment 31 January Deadline Reminder
HM Revenue and Customs (HMRC) has urged the 3.8 million people yet to file their Self Assessment tax return are urged to "act now or risk facing a £100 penalty". HM Revenue and Customs (HMRC) is expecting more than 12.1 million tax returns to be filed for the 2022 to 2023 tax year along with any payment that is owed. To date more than 8.
HMRC Issues Self Assessment 31 January Deadline Reminder
HM Revenue and Customs (HMRC) has urged the 3.8 million people yet to file their Self Assessment tax return are urged to "act now or risk facing a £100 penalty". HM Revenue and Customs (HMRC) is expecting more than 12.1 million tax returns to be filed for the 2022 to 2023 tax year along with any payment that is owed. To date more than 8.
13 June 2011
Corporation Tax Debate Continues
The debate over the possible devolution of corporation tax to the Stormont Executive has again been highlighted.
Corporation Tax Debate Continues
The debate over the possible devolution of corporation tax to the Stormont Executive has again been highlighted.
25 May 2011
NI Corporation Tax Amounts 'Unknown'
An Ulster Unionist politician has welcomed a new report on Corporation Tax from the Westminster Northern Ireland Affairs Committee. The influential committee has said there is a convincing case for lowering corporation tax in NI and said a reduction could boost the private sector and help innovation and exports.
NI Corporation Tax Amounts 'Unknown'
An Ulster Unionist politician has welcomed a new report on Corporation Tax from the Westminster Northern Ireland Affairs Committee. The influential committee has said there is a convincing case for lowering corporation tax in NI and said a reduction could boost the private sector and help innovation and exports.
15 November 2024
New £4.3m Grant To Boost Business Innovation
Economy Minister Conor Murphy has launched the Business Innovation Grant (BIG), a new £4.3 million initiative designed to stimulate innovation and enhance productivity among Northern Irish businesses. The scheme, developed by Invest Northern Ireland and delivered in partnership with Innovate NI, is open to micro-businesses, sole traders, and SMEs.
New £4.3m Grant To Boost Business Innovation
Economy Minister Conor Murphy has launched the Business Innovation Grant (BIG), a new £4.3 million initiative designed to stimulate innovation and enhance productivity among Northern Irish businesses. The scheme, developed by Invest Northern Ireland and delivered in partnership with Innovate NI, is open to micro-businesses, sole traders, and SMEs.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
