ICAI presented its analysis of the Varney report to the House of Commons’ Northern Ireland Affairs Committee at Westminster on 27 February.

The Committee is to debate the analysis offered by Sir David Varney in his rejection of the case for reducing the corporation tax rate in Northern Ireland to that pertaining in the Republic of Ireland.

ICAI has been a key player in this debate; and published a rebuttal document to the Varney report on the day of the Committee hearing, which is reproduced at Section 2.01.

ICAI told the Northern Ireland Affairs Select Committee in Westminster that the case for a low rate of corporation tax in Northern Ireland is stronger now than at any point in the past decade.

ICAI contend that there are no significant legal or fiscal impediments to the introduction of a 12.5% rate and that the British government should move now to provide Northern Ireland with the means to grow its own economy.

Giving evidence to the Committee on the Varney Report into Taxation in Northern Ireland ICAI President Vincent Sheridan said a low rate of corporation tax is a vital element in stimulating economic growth and productive job creation. He pointed out Sir David Varney's lack of analysis of the positive experience in the Republic of Ireland.

“Sir David's review focused on differences between the Northern Ireland economy and the southern Irish economy. It ignores the significant similarities in language, culture, education, transport, telecommunications and business legislation. An ‘All Island Economy’ is a reality, accepted by the governments on both sides of the border. Notwithstanding the tendency to focus on differences, the Review does note that the imbalance of corporation tax rates is a significant obstacle to maximising the benefit of this shared Economy. We welcome the review's recognition of this.”

ICAI NI Tax Committee Chairman, Eamonn Donaghy said the Varney Report presented business in Northern Ireland with no innovative thinking and no proposals for change.

“We have come to Parliament today at the request of the NI Affairs Select Committee to demonstrate the extent to which this report is flawed and how the Varney arguments only strengthen the case for a lower rate of corporation tax in NI.

ICAI is pleased to have the opportunity to give evidence before the Northern Ireland Affairs Committee in Westminster. This not only presents an appropriate way through which we can keep this issue on the agenda but also presents an excellent chance to seek the clarification we desire on the report's findings.”

ICAI has met with a number of the committee members over the past 8 months and brought together a group of major leading business leaders in the north recently to reiterate the shared commitment in the business community for a lower rate.

At an ICAI organised event in the Europa Hotel on Friday 8 February, ICAI said that the case for a common corporation tax rate of 12.5% across the island of Ireland is stronger in the aftermath of the publication of the Varney Review of Tax Policy in Northern Ireland.

The press release issued is reproduced at Section 2.02.