Varney report on tax policy in Northern Ireland

Report (136 pages, PDF) by Sir David Varney to the UK Treasury on tax policy in Northern Ireland. The report argues against a reduction in the corporation tax rate in Northern Ireland.

The report's review of EC State aid law issues and the Azores judgment concludes that:

3.20. A move to a differential corporation tax rate for Northern Ireland would be possible in principle. However, it would involve legislative changes and legal issues would affect the design of such a scheme. Also, the fiscal consequences of such a move would have to be borne immediately by the Northern Ireland Assembly.

It also notes that the Article 87(3)(a) justification which enabled the Azores to maintain a lower corporation tax rate than the rest of Portugal in sectors other than financial services and intragroup services cannot apply to Northern Ireland.

For further information or advice please contact Franck Latrémolière.

Filed under HM Treasury, State aid.

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