AIDAN WALSH,
Madam, - The Irish corporate tax rate is 12.5 per cent, one of the lowest in Europe, to encourage inward investment. To a large degree that inward investment is the foundation of our prosperity.
This week's Economist magazine has an article on tax rates in Europe which refers to our corporate tax rate as 16 per cent, obviously less attractive to investors than 12.5 per cent. However, it is hard to criticise the Economist for getting this wrong when the Revenue Commissioner's own website also gives the rate as 16 per cent. True, the new rate has applied only since January 1st, but it was announced in 1998, so it is hard for the Revenue to argue that this has come as a surprise. - Your, etc.,
AIDAN WALSH, Hollybank Avenue, Ranelagh, Dublin 6.