Sustainable growth and economic stability are built on the platform of a thriving business sector. For that we need a modern tax system that underpins business competitiveness and raises revenues in a manner that best supports commercial decisions that businesses have to take on investment, on jobs and on legal and operating structures.
The publication of this document marks the next stage in the Government’s strategy to achieve that objective through the reform of corporation tax. Since 1997 we have reduced the rate of corporation tax to 30 per cent and introduced a zero rate for the smallest companies. We have introduced new flexibility, removed distortions and taken the necessary measures to combat tax avoidance. However, further steps are needed if we are to ensure that the corporation tax regime meets the challenges of the modern business environment, does not impede the drive to greater economic efficiency, productivity and growth, and keeps pace with European and international developments.