If you believe some of the more sensationalist rumous, this is what is on the cards after Tuesday. Realistically, we will probably see a change in the taxation of profits repatriated to the US, the nature of which will determine the extent of the damage to Ireland.
I’ve seen little discussion of this scenario on the Pin - anyone have more details on this?
Robert Shapiro was on NewsTalk this morning about this subject - reckons these profits are taxed when they’re eventually repatriated anyway and that in the context of a global recession, this change isn’t overly relative since we need to remain focussed on competitiveness and skilled work-force, etc., etc.
I translated it as yes, Obama will try to change this and we need to do the math ourselves as to the impact.
I’ve been wondering this for a while now - I heard something weeks back that sugested Obama will force US multinationals to repatriate profits and consequently his election would be a bad thing for Ireland. Wasn’t sure if I’d heard it right and couldn’t find a source so I really wasn’t sure…
This same old chestnut about multinationals pulling out was in all the Irish papers in 2000-2001,Bush jnr promised the same thing while running for office,can`t say I noticed a stampede of Multinationals to US soil back then.
McCain directly referenced Ireland in the debates as somewhere the US as somewhere that was attracting jobs in favour of the US due to low corporation tax. One would assume he meant he’d like to remedy that, no? So why the focus on Obama?
I heard this to but my impressions was don’t worry about the tax changes, worry about your declining competitiveness. Anyhow the guy obviously doesn’t know much cos he talked about our world class infrastructure, where is that again?
Sure that canbe applied to dozens of states around the globe, its all about poaching US Multi’s, sure didn’t’ we write the book (i.e. the non puppet dictatorship method of FDI… oh hang wait a sec, no I’m wrong sorry.)
I’d expect a deal to be worked out between the US & Ireland. I think google might have “settled” with the IRS in relation to off-shore profits. The US multinationals are entitled to be as Tax efficient as possible if fact they have a duty to their share holders.
Yep, that was my impression too, although I think I might be a bit more cynical than you and suspect that the “worry about your declining competitiveness” angle was also a way of dodging the question he was being asked.
In the McCain vs Obama thing, I think Ireland could be in trouble if Obama forces the repatriation of profits in the year they’re earned and we could be in trouble if McCain reduces taxes making it less attractive to park cash in places like Ireland.
To that end, given the state of the US economy, McCain is less likely to deliver on his tax cuts than Obama is to deliver on what are effectively tax hikes.
I think at this stage it is extremely likely that Obama will win the election. I don`t think whoever gets elected will have too much time to worry about the “few” jobs that currently are located in Ireland.
The US Treasury Dept has already requested a renegotiation of a tax agreement on multinationals based in Ireland.
There is concern about the use of Ireland as a tax haven, which benefits the Irish Exchequer.
Two of the biggest Irish companies by revenue are owned by Microsoft and operate from the offices of Matheson Ormsby Prentice solicitors in Dublin. They have no direct staff and one of them pays Irish corporation tax on income earned in other overseas locations.