Written evidence from KPMG Ireland
In response to the call for submissions from the
Northern Ireland Affairs Committee (issued on 28 July 2010 to
assist with the committee's inquiry into Corporation Tax in Northern
Ireland), KPMG is pleased to submit this response.
KPMG Ireland is a member of KPMG International and,
uniquely among the Big 4 firms, is an all island firm located
in both Northern Ireland and the Republic of Ireland. The firm
has almost 80 partners and more than 1,700 staff located between
its offices in Belfast, Dublin, Cork and Galway. We believe that
our experience in advising on cross border fiscal matters, and
in particular on Foreign Direct Investment into the Republic of
Ireland, leaves us in a very strong position to comment in respect
of the committee's inquiry.
Our Head of UK Tax, Eamonn Donaghy, is currently
Chairman of the Northern Ireland Tax Committee for Chartered Accountants
Ireland ("CAI") and a member of the Northern Ireland
Economic Reform Group ("NIERG"). In these roles, Eamonn
has invested significant time in lobbying for a change in the
corporate tax rate in Northern Ireland and made significant contributions
to the submissions of CAI and NIERG to the Northern Ireland Affairs
Committee on this matter.
KPMG has had the opportunity to review the submission
of CAI and supports the introduction of the reduced rate of corporation
tax in Northern Ireland for the reasons set out in that submission.
Whilst we are supportive of the introduction of other fiscal incentives,
we believe that the ability to vary the rate of corporation tax
is key to the ability of Northern Ireland to make the necessary
"step change" that is required to foster a vibrant private
sector.
KPMG is willing to assist the Committee in its deliberations
and inquiry and to provide any information or evidence should
such be required.
We look forward to the outcome of the inquiry and
hope that this will lead to the requisite changes to facilitate
the introduction of a reduced rate of corporation tax in Northern
Ireland.
20 September 2010
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