Warning over tax ‘gamble’

Fionn Kelly, Mullingar, Tomás Brennan, Walshestown, and Dylan Byrne, in their project ‘Taxed to the max: Ireland’s corporate gamble’ have sounded the alarm bells over how reliant Ireland is on the disproportionate level of taxes it receives because of the country’s low corporate tax rate.

The Coláiste Mhuire trio have spent months researching the risks and opportunities of Ireland’s current economic model, which they describe as a dangerous gamble.

Their investigation into the sustainability of the national budget was sparked by a startling statistic regarding where Ireland’s wealth actually comes from.

“We came across an article and it told us that in 2023, 52% of Ireland’s corporate tax rate came from just the top 10 multinational companies,” Fionn Kelly explains. Despite the massive impact those firms have on Irish life, the team found a significant “awareness gap” in the community. Their survey of 100 students revealed that some 63% were completely unaware of how much the country depends on a handful of global giants.

While the current figures are record-breaking – with 2025 bringing in a staggering €34.7 billion in combined corporate and income tax – the students warn that the prosperity is fragile.

Dylan Byrne contends that while the money is a “huge positive”, the threat of a sudden exit is real. “If these companies were to depart, it would leave a huge gap in Ireland’s economy and would definitely lead to a recession if a few of them were to pull out,” he warns.

The threat is not just theoretical. Tomás Brennan points to international tax competition as a primary risk factor, particularly from the United States. “The top three multinational companies are all from America, and America are aiming to match our corporate tax rate at 15%,” Tomás says.

To quantify the danger, the group calculated the “cost of departure” should those top three US firms decide to leave Irish shores. The results were sobering: 50,000 jobs would be lost immediately; €15 billion in annual tax revenue would vanish; 10% of Ireland’s total GDP would be wiped out.

When asked if such a scenario would leave a future for young people, the team were blunt. They believe the current generation of students must understand the risks because they are the ones who will inherit the consequences. “We’re trying to raise awareness to young people because they’re the workforce of the future and the taxpayers of the future,” the group concluded. “That’s the goal of our project.”