AN INVESTMENT AND 3. IDA Ireland INFHEISTIOCHTA AGUS FORBARTHA DEVELOPMENT AGENCY Teach Pairc Wilton Wilton Park House Pies Wilton Wilton Place Baile Atha Cliath 2 Eire Dublin 2 Ireland F?n (01) 603 4000 Tel: (01) 603 4000 Face (01) 603 4040 Fax: (01) 603 4040 Suiomh Gr?asain Website 25th October 2015 Mr Gavin Sheridan Right to Know Re: FOI request, advice of internal review Dear Mr Sheridan 1 refer to the appeal which you made under the Freedom of Information Act 2014, dated and received on 5th October 2016 seeking a review of the deemed refusal of your request. lam a more senior member of staff in IDA Ireland, than the original decision maker in this case. I have decided today 25thOctober to part-grant the information requested in relation to your original request. This review of your request is an entirely new and separate decision, and is explained as such below. I understand from the FOI Officer that you were informed that a decision would not be made on the original request for 7 to 10 days after the extended deadline. You then requested an internal review based on a deemed refusal due to not receiving a decision within the time limits. Your original request, sought access to the following records 1. All records relating to the analysis that support the claim that "high income tax was making it difficult to attract foreign investment and hitting job creation" which was reported in the Irish Independent on 20 July 2016 2. All records submitted to IDA Ireland by third parties in relation to personal tax and social security rates in Ireland. I also refer to the further clarification which we received from you on 19th August 2016 and now confirm that Question 2 above has been amended as follows: 0 Time span: Records submitted from 2014 to date 0 Grades: Records submitted to the Board (and committees), CEO and direct reports to the CEO (including records submitted to lower grades but forwarded to these levels in the IDA) I would also ask that records submitted from 2014 to date to the responsible for tax policy be in-scope irrespective of grade, that would include the department in which the chief tax advisor sits. In arriving at this decision I have had regard to the original request, the records which were located as part of that request and the appeal letter which you submitted in this regard. Findings, particulars and reasons for decisions to deny access Question 1 IDA Ireland continually analyses personal taxation and social security and how it influences the FDI environment in Ireland. This analysis is carried out using various methods including reports such as the KPMG ?Global Tax Rate Survey 2015? (available on and the Tax Institute 'Report on Ireland?s Global Position on Income Tax? as well as engagements with stakeholders, clients and staff. Research was undertaken by IDA Ireland in early 2016 to identify the reasons why some companies who considered Ireland as a location for investment, did not end up establishing an operation here. Along with a number of other issues, personal tax was raised by some of these companies as one of a combination of reasons as to why they did not end up choosing Ireland for their investment. In its 2017 pre-budget submission, IDA lreland strongly stated personal tax as one of the key issues of focus for the coming year and this is detailed on an extract from that submission on the attached record 1. Section 29. Deliberations of Public Bodies 29. (1) A head may refuse to grant an FOI request if the record concerned contains matters relating to the deliberative processes of an FOI body (including opinions, advice, recommendations, and the results of consultations, considered by the body, the head of the body, or a member of the body or of the staff of the body for the purpose of those processes) and the granting of the request would, in the opinion of the head, be contrary to the public interest. The redacted records contain information regarding IDA Ireland and ongoing activities of formulating, considering, weighing up, advising and deciding on issues and it is essential that these activities are not interfered with. While the redacted information relates to submissions concerning the 2017 Budget, this section of the act provides for information relating to deliberative processes to be protected even after a high level decision has been made provided the head is satisfied that the balance of public interest does not favour granting the request. While broad decisions may be made on the issues contained in these documents, the full detail of these decisions has not yet been negotiated. Premature release of the information before the details have been agreed could reasonably be expected to adversely impact investment and economic activity in Ireland. IDA Ireland and DJEI must protect their deliberative processes in order to be able to effectively weigh up, advise and decide on issues which affect the future of the organisation in its promotion of Ireland as a prime location for multinational companies. The public interest arguments in favour of release are: I- the right of the public to have access to information, a disclosure will reveal reasons for decisions - the accountability of administrators and scrutiny of decision making processes 0 the need for the public to be better informed and more competent to comment on public affairs - the information will make a valuable contribution to the public debate on an issue I the need to ensure democratic control to the greatest extent possible over the increasing regulation by public bodies of the affairs of the ordinary citizen. However the public interest arguments against release in this case are much stronger and therefore uphold IDA Ireland?s decision; - need to preserve confidentiality having regard to the subject matter and the circumstances of the communications, - release of records would impair a future decision, - premature release could contaminate the decision making process - premature release of records would impair the integrity and viability of the decision making process to a significant or substantial degree without countervailing benefit to the public, - broader community interests must be considered, as distinct from those of the applicant and the subject of the record, - disclosure of records which do not fairly disclose the reasons for a decision may be unfair to the public body and prejudice the integrity of the decision making process, While recognising the right of the public for access to information and the accountability of Government Bodies, the release of this data could pose a serious risk to the proper working of IDA Ireland and its decision making processes and significantly impact on FDI activity in Ireland. Therefore on balance it is not in the public interest to release the redacted information. Section 36. Commercially Sensitive Information 36. (1) Subject to subsection (2), a head shall refuse to grant an request if the record concerned contains? (a)trade secrets of a person other than the requester concerned financial, commercial, scientific or technical or other information whose disclosure could reasonably be expected to result in a material financial loss or gain to the person to whom the information relates, or could prejudice the competitive position of that person in the conduct of his or her profession or business or otherwise in his or her occupation, or information whose disclosure could prejudice the conduct or outcome of contractual or other negotiations of the person to whom the information relates. Disclosure of the redacted information could reasonably be expected to threaten the competitive position of the organisation. Making this information publicly available would give other countries an insight into how IDA Ireland does its business, thereby potentially reducing our competitiveness for new business and expansions. This would threaten Ireland's competitive position vis a vis other countries who are seeking investments from similar clients and geographical areas and could result in a material financial loss to the economy of Ireland. While carefully considering the public interest arguments for release of the information such as the need for transparency and accountability of public bodies, it is my view that the release ofthis information could impede IDA in future negotiations and seriously impede its ability to make informed decision while carrying outs is functions Section. 40. Financial and economic interests of the State and public bodies 40. (1) A head may refuse to grant an FOI request in relation to a record (and, in particular, but without prejudice to the generality otherwise of this subsection, to a record to which subsection (2) applies) if, in the opinion of the head? access to the record could reasonably be expected to have a serious, adverse effect on the ability of the Government to manage the national economy or on the financial interests of the State, premature disclosure of information contained in the record could reasonably be expected to result in undue disturbance of the ordinary course of business generally, or any particular class of business, in the State and access to the record would involve disclosure of the information that would, in all the circumstances, be premature, access to the record could reasonably be expected to have a negative impact on decisions by enterprises to invest or expand in the State, on their research activities or on the effectiveness of the industrial development strategy ofthe State, particularly in relation to the strategies of other states, or access to the record could reasonably be expected to result in an unwarranted benefit or loss to a person or class of persons (2) This subsection applies to a record relating to taxes, revenue duties or other sources of income for the State, a local authority or any other public body, foreign investment in enterprises in the State, industrial development in the State, Premature disclosure of our position on personal tax rates could reasonably be expected to cause undue disturbance of the ordinary course of business generally, or any particular class of business in the State. IDA Ireland fully understands its obligation to the public to release information in regard to its activities at the appropriate time. Release of the redacted information would be premature and would have a wide ranging impact on business in the State as it could adversely affect decision making and investment decisions for those companies. Due to the phased nature of implementation of changes in the area of tax policy, much of the information contained in the redacted records is still part of an ongoing process and therefore cannot yet be released. The release of this information would have a negative impact on investment, expansion, or research activities of enterprises and on the effectiveness of the industrial development strategy of the State. While carefully considering the public interest arguments for release ofthe information such as the need for transparency and accountability of public bodies, it is my view that the release of this information could seriously impact the wider economy. Question 2 Please see attached record. Rights of appeal You may make an ?application for review' of this decision to the Information Commissioner no later than 6 months from the date of this notification. There is a fee of ?50. Payment should be made by way of bank draft, money order, postal order or personal cheque: crossed and made payable to the ?Office of the Information Commissioner?. Alternatively you can make payment on-line which can be located at: . Should you wish to make an 'application for review? in writing, please use the details below: The Office of the Information Commissioner, 18 Lower Leeson Street, Dublin, 2. D02 HE97 Alternatively you may appeal using the Office of the Information Commissioner on-line application form which can be located at: If an appeal is made by you and accepted, the Information Commissioner will fully investigate and consider the matter and issue afresh decision. Publication All non-personal FOI requests will be recorded on an FOI disclosure log which will be published on the IDA Ireland website in due course. Should you wish to discuss the above, please contact me at 01 6034166 or deirdre.lyons@ida.ie. Yours sincerely, Deirdre Lyons Internal Reviewer Schedule of Records IDA 02 60 Record Number Description Date Number of Pages Decision: Grant/Part Grant/ Refuse Extract from IDA 2017 Pre Budget Submission Part-Grant Extract from DJEI 2017 Pre Budget Submission Refuse Email from Bob Savage Mark Redmond 2 Grant RECORD 1 Extract from IDA 2017 Pre-Budget Submission (1st item) 1. Tax Items This section covers 11 tax items categorised in 3 separate sections: 1. Personal Tax Items (Talent/Skills) 2. Business/Corporate Tax Items 3. Miscellaneous/Sectoral Items PERSONAL TAX ITEMS 3.1 Reduce Top Marginal Income Tax Rate below 50% IDA supports a broad approach to the tax base to support a wide revenue source for tax receipts, non-tax revenues and capital receipts. The concentration of the tax base with associated high tax rates, in some categories, places Ireland at a relative international competitive disadvantage. The current Irish Marginal Tax Rate is 52% (40% IT 8% USC 4% PRSI), as compared to the 2015 EU average rate 37.94% (KPMG Global Tax Rate Survey). This positions Ireland?s marginal tax rate 14 percentage points higher than the EU average. While all personal tax rate reductions would be welcomed, any reductions aimed below the top rate will not change this international comparative position and, therefore, will not benefit Ireland from an FBI marketing position. IDA Priorities - Ireland?s "Top Marginal Rate? to be below 50% from 2017, and 0 Publication of a Road Map of further reductions to 2020. Rationale 0 It is important that Ireland positions itself as income tax competitive at all income levels. International cost comparisons show Ireland is currently competitive at earning up to and including the average industrial earnings. The creation of high value employment in Ireland has the potential of increased exchequer returns, generate additional employment and stimulate the wider overall economy. Ireland?s ability to grow employment at all levels requires the Irish tax system to be competitive for senior staff around which projects are built. 3.2 Special Assignee Relief Programme (SARP) Ireland?s current Special Assignment Relief Program (SARP) seeks to provide income tax relief to qualifying individuals assigned by their existing overseas employer to work in Ireland, on or after 1 January 2012. Unless extended, SARP is due to expire on 31 Dec 2017. While still not "best in class?, following recent improvements SARP is currently being successfully used by elements of our client base. IDA Priorities Extend SARP beyond 31 Dec 201 7 to 31 Dec 2022 Rationale 0 The availability of a local talent pool, which can be supplemented by the attraction of specialist skills, is a key focus point for FDI. RECORD 2 [?22.cm 3? Carter, Shirley From: Bob Savage St Mark Redmond on behalf of Bob Savage Mark Redmond Sent: 06 May 2016 19:37 To: Clancy, Leo Subject: Priorities for new Government LJUCH We have begun a comprehensive programme of engagement with the newly formed Cabinet, Government and the leadership of the opposition. We are clearly setting out the priorities of the Chamber's membership and our suggestions on how Ireland can remain the global location of choice for US business investment. These priorities include: - Ireland as an attractive place to live and work: sufficient availability of commercial and residential property with appropriate physical and digital infrastructure; access to schools; a personal tax environment that encourages productivity and innovation - Talent strategy: An agile and fit-for-purpose first and second level curriculum; third and fourth level centres of excellence; STEM participation - Innovation: Doubling Ireland?s investment in FiD&l; enabling innovation ecosystems involving SME's and HEI/Fiesearch centres - The Data agenda: A strategy to position Ireland as a global centre of excellence for data Cost competitiveness: Rigorous benchmarking with competitor territories for FDI with corrective actions where needed - Advanced manufacturing: Positioning Ireland as a global centre of These are the broad headings of our advocacy agenda. Please share your thoughts and perspective on these and any other issues of importance to your company with us. With thanks for your invaluable support, Bob Savage Mark Redmond President Chief Executive This email was sent to leo.clancy@ida.ie why did! get this? unsubscribe from this its! update subscription preferences American Chamber ol Commerce Ireland - ie - Dublin, Dublin - Ireland