Does Azorean ruling close door on corporation tax cut?

The European Court of Justice has ruled that the lower personal and corporate tax rates enjoyed by Azoreans must end and be brought into line with the rest of Portugal (Full judgement here). The Irish Independent believes this puts a question mark over the campaign for a lower corporation taxes for Northern Ireland. A campaign it believed was beginning to pick up some steam (subs reqd).

  • George

    Fair_Deal,

    this state aid thing was always going to be a problem as I pointed out with your suggestion about targetting specific industries.

    My own view, which I’ve said before, is that the only time this was possible was in 1998 when Northern Ireland could have got some kind of special deal when everyone was loved up on the peace buzz.

    But nobody in Northern Ireland had the gumption to go for it.

    The simple thing to do was to support a single Industrial Development Authority thus necessitating a single corporate tax rate for the island but that was too much North-Southery for some.

    Now that boat has sailed and I can’t see Europe budging on this.

    Next idea please.