The position of the Institute of Chartered Accountants in Ireland (ICAI) is that it fully supports the introduction of a reduced corporation tax rate in Northern Ireland to a level of 12.5%, being the same as the rate applicable in Ireland. We were disappointed by the outcome of the Varney review published 17 December 2007, not so much because it dismissed the idea but that in dismissing it, Sir David Varney either overlooked or misinterpreted some key elements.

Sir David also appears to have either dismissed or ignored arguments and evidence presented by the leading NI politicians and business people who responded to his call for evidence when compiling his report.

The Review fails to explore the possible beneficial effects of other forms of tax incentive to help redress the economic imbalance within Northern Ireland which all commentators, including Sir David, have identified. Overall, while the Review cogently identifies the challenges, it offers little in terms of solutions. A more proactive approach is required, which is implicitly recognised from the commissioning by Government of a further report from Sir David.

ICAI organised an event in the Europa Hotel, Belfast at 1pm on 8 February 2008 to which we invited key influencers in the political, business and media arenas. Our purpose is to:

• Convey ICAI concerns on the status of NI Tax Policy and our proposals for future directions
• Gauge the most current thinking and reaction to the Varney Review
• Outline how we might all help to influence official thinking as Sir David formulates his second report
• Share suggestions and ideas as to other tax incentives towards improving the NI economy

We have been granted an opportunity to present evidence to the NI Select Committee at Westminster. Speakers at the Belfast event included Sir George Quigley and Mr Eamonn Donaghy, Chair of the ICAI NI Tax Committee and tax partner at KPMG.