No more tiers for company tax

The correction of a drafting error in 1989 tax law is behind the decision to stop companies double-tiering tax payments.

Previously, companies could pay their 33 per cent tax by electing a withholding tax rate of 19.5 per cent, then paying the shortfall at the end of the financial year.

A revenue adviser to Dr Cullen, David Carrigan, says the change means firms simply lose a short-term timing advantage.

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