Corporation Tax in Northern Ireland - Northern Ireland Affairs Committee Contents

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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