Text of Commission on Taxation Report- 2010

Establishment and terms of reference

The Commission was established on 14 February 2008 to review the structure, efficiency and 

appropriateness of the Irish taxation system and with the intention that our work would help establish the 

framework within which tax policy would be set for the next decade at least. 

Our terms of reference are far-reaching. We were asked to have regard to the commitments on economic 

competitiveness and on taxation contained in the Programme for Government, in particular the four 

commitments:

• Tokeeptheoveralltaxburdenlowandimplementfurtherchangestoenhancetherewardsof

work while increasing the fairness of the tax system

• Toensurethatourregulatoryframeworkremainsflexible,proportionate,anduptodate

• Tointroducemeasurestofurtherlowercarbonemissionsandtophaseinonarevenueneutral

basis appropriate fiscal measures including a carbon levy over the lifetime of the Government, 

and

• Theguaranteethatthe12.5%corporationtaxratewillremain

We were invited, in the context of maintaining an equitable incidence of taxation and a strong economy, 

to consider the structure of the taxation system and specifically to:

• Considerhowbestthetaxsystemcansupporteconomicactivityandpromoteincreased

employment and prosperity while providing the resources necessary to meet the cost of public 

services and other Government outlays in the medium and longer term

• Considerhowbestthetaxsystemcanencouragelongtermsavingstomeettheneedsof

retirement

• Examinethebalanceachievedbetweentaxescollectedonincome,capitalandspending

• Reviewalltaxexpenditureswithaviewtoassessingtheeconomicandsocialbenefitsthey

deliver and to recommend the discontinuation of those that are unjustifiable on cost/benefit grounds

• Consideroptionsforthefuturefinancingoflocalgovernment,and

• Investigate fiscalmeasurestoprotectandenhancetheenvironmentincludingtheintroduction

of a carbon tax