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:

• To keep the overall tax burden low and implement further changes to enhance the rewards of

work while increasing the fairness of the tax system

• To ensure that our regulatory framework remains flexible, proportionate, and up to date

• To introduce measures to further lower carbon emissions and to phase in on a revenue neutral

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

and

• The guarantee that the 12.5% corporation tax rate will remain

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:

• Consider how best the tax system can support economic activity and promote increased

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

• Consider how best the tax system can encourage long term savings to meet the needs of

retirement

• Examine the balance achieved between taxes collected on income, capital and spending

• Review all tax expenditures with a view to assessing the economic and social benefits they

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

• Consider options for the future financing of local government, and

• Investigate fiscal measures to protect and enhance the environment including the introduction

of a carbon tax