|Seamus Coffey is
a new entry this year
Seamus Coffey is a new entry in this year's Global Tax 50,
and makes the cut for his extensive review of Ireland's
corporation tax code.
In the review, 'Review of Ireland's Corporation Tax Code'
(or, informally, the Coffey report) he sets out a number of
recommendations for modernising Ireland's transfer pricing (TP)
rules, recalibrating the existing intellectual property (IP)
regime and maintaining Ireland's competitiveness. The report is
expected to have a significant impact on transfer pricing in
Ireland in the coming years.
Coffey, a lecturer in economics at University College Cork
and chairman of the Irish Fiscal Advisory Council, was
appointed by Ireland's Department of Finance in October 2016
and tasked with finding areas of the Irish tax code that needed
The report is not legally binding but, if adopted, the
recommendations will have a big impact on the application of TP
rules. It proposes expanding the scope of application of the TP
rules and imposing a heavier administrative burden on taxpayers
subject to the rules.
In his report, Coffey confirmed that the Irish corporation
tax code is fair, competitive, sustainable and certain.
However, in order to modernise the TP rules, the report
recommended Ireland follow the 2017 OECD TP guidelines and
adopt BEPS Action 13 on country-by-country reporting. It also
recommended that TP rules should apply to all transactions
including non-trading transactions, capital transactions and
The report made recommendations on taxation of intangible
assets, saying that a controlled foreign company regime must be
introduced by 2019 in line with the EU's Anti-Tax Avoidance
Directive. Coffey also called for Ireland to maintain its
commitment to BEPS and EU initiatives, and recommends that
Ireland moves to a territorial tax system and/or changes its
foreign tax credit regime. This would help maintain Ireland's
competitiveness, the report said.
The Minister for Finance Paschal Donohoe stated the review
"provides a clear road map and timeframe for Ireland to
implement important international reforms".
Something that will not be altered following the report is
Ireland's 12.5% corporate tax rate, which, according to
Donohoe, remains "the bedrock of our competitive corporation
tax regime and that is not going to change".