The Department of Finance has placed taxation policy as one of its strategic priorities in its Statement of Strategy for 2008–2010. The Department plan “to develop efficient and effective taxation policies which support and promote the Government's economic, social and environmental objectives”.

While such aspirations are to be lauded, it is crucial to remember that an efficient and effective tax system should include policies which encourage businesses to locate in Ireland. If businesses do not locate in Ireland, then tax receipts will decrease which will mean insufficient funds for the Government's objectives.

The Department outlines indicators for progress, which include:

• – tax receipts that are adequate to meet the Government's budgetary plans.
• – improvements in the efficiency, effectiveness and equity of the tax system.
• – maintaining a broad tax base and reviewing tax expenditures as appropriate.
• – keeping lower paid people out of the tax net.
• – maintaining the current corporate tax system.
• – using the tax system to support environmental nriorities