Will Ireland's corporation tax survive?


#630

The Irish Times, as predicted!

John McManus: Why we have no right to spend Apple’s €13bn
The money does not belong to us and we should give it back to its owners
irishtimes.com/opinion/john- … -1.2774603

Editorial:
EU decision on Apple: Are we defending the indefensible?
In the absence of standardisation of rates or tax bases, the state aids inquiry is a clumsy, blunt mechanism
irishtimes.com/opinion/edito … -1.2774625


#631

I watched Six One there.
The EU commissioner was a bit disingenuous saying that a company without staff or operations can’t have Revenue. She knows full well that patent company’s exist.

Richard Bruton was very very weak when giving his view ‘EC can’t act as judge jury executioner’. I’d hate to see him up against her in any intellectual battle.

We urgently need someone outside the echo chamber to independently review what Revenue, MNC and the Big 4 have been up to.

Has the simple word ‘Fraud’ been used yet ?
Ireland is like a Liberian registered oil tanker. Getting approval from our government and revenue has precisely f**k all moral weight.

Brian Hayes is furiously back peddling now saying ‘these are legacy issues’ ‘Noonan changed the rules’


#632

There is probably a ton highly experience people in EU trading law located in London who could be used after the Brexit


#633

From today’s IT:


#634

Well if no one wants the money i would be happy with 0.05% of it :laughing:


#635

There is an assumption here of some big political-administrative-corporate nexus here.

It is not how it works.

The government sets tax policy, and leaves it to Revenue to *implement *it.

No one can give Revenue a call (not the Minister, not the head of the IDA) and be told how much *any *firm pays in tax.

This is not how it works in many countries, but Ireland but taxpayer confidentiality is taken incredibly seriously at all levels in Revenue.


#636

If you really think that is how things work here, you are being naive.


#637

Eh. this guy would agree with you.


#638

+1
I’ll admit it is how it’s supposed to work, and how it’s said to work. However, I would have no reason to be confident that that is in fact how it works, and the track record around things like bank regulation etc., support that skepticism.

If I was either a Minister or an IDA official and wanted to know how much a firm pays in tax in order to help them out, the obvious place to get that information is from the firm itself.


#639

EC proposes mandatory consolidated tax rules for large companies

rte.ie/news/business/2016/10 … tax-rules/


#640

You have to give Ireland opportunities to openly display their contempt for their partners in the E.U. before you can move against them. This is one of those opportunities.
At present it is business as usual.
Would the big German and French companies really miss the trade they do with Ireland.
Is there any common infrastructure policy that depends on a country on the periphery that warrants the leakage of trillions of taxable activity in the greater E.U.


#641

There are other taxes in the pipeline.

German Parties Vying in Elections Differ on Domestic Taxes - -> bna.com/german-parties-vying-n57982088239/

E-commerce platforms face new VAT liability rules - -> euractiv.com/section/digita … ity-rules/

Netflix, YouTube to Pay Tax on Turnover in France Under New Law - -> variety.com/2017/film/global/net … 202565236/


#642

irishtimes.com/business/eco … -1.3497421


#643

Ireland is the world’s biggest corporate ‘tax haven’, say academics

irishtimes.com/business/eco … -1.3528401


#644

Dublin-based tech firm relocates to US due to Trump’s ‘favourable’ tax changes

irishtimes.com/business/tec … -1.3612765


#645

Some interesting tax measures coming into law this year and next.
rte.ie/news/business/2018/1 … avoidance/


#646

EU Presidential debate hears call for minimum 18% corporation tax rate

A debate among the lead candidates for the presidency of the European Commission has heard a call for a minimum 18% corporation tax rate across the EU.

The call from the European Regulation Commissioner Frans Timmermans for the 18% minimum level would have serious implications for Ireland, where the corporation tax rate is currently is 12.5%.

The proposal was made in a live television debate from Brussels tonight which was screened for millions of people across Europe.

As the six candidates for the role of President of the European Commission made their pitch for one of top jobs in European politics, the European Competition Commissioner Margrethe Vestager also increased the pressure on Ireland by saying "We need to put a floor under corporate taxation as such, because otherwise, it will just be a race to the bottom."

The Presidency of the Commission goes to the candidate of the political party capable of marshalling sufficient parliamentary support.

Ms Vestager, who is the lead candidate for the Alliance of Liberals and Democrats for Europe (ALDE) said the presenter was “very generous when he said that some only pay 5% because some pay 0.05% in some years as we saw within the Apple case”.

She acknowledged that taxation has been changed in Ireland, the Netherlands, Belgium, Malta and Cyprus “because change is coming”.

She stressed the need for digital taxation as a lot of these companies are escaping while most companies do pay their taxes and this is “unfair”.

https://www.rte.ie/news/politics/2019/0515/1049755-european-comission-presidency-debate/

Saw this was on France 24/Euronews. Hadn’t seen them do this before. No doubt it’s to appease euro sceptics and convince the public they get their little say in the election of the President. Once Britain is fully chastised for it’s attempt at breaking from the club, and the elections are out of the way, we can maybe expect a more aggressive stance on Corp tax, and action on the digital taxation Macron has been flagging up for some time now.


#647

what does digital taxation mean? I assume it is a way to tax the googles, facebooks etc, but how is this different corporate tax in the way we think about it?


#648

Macron Aims to Force ‘Tax Justice’ on Facebook, Google and Apple

French lawmakers will start debating on Monday a tax meant to force Internet giants like [Amazon Inc.] and [Facebook Inc.] to pay a 3 percent levy on digital turnover.

Parliament will discuss the tax, which targets companies with 750 million euros ($842 million) in worldwide revenue and 25 million euros of French digital sales, over the next several weeks. The levy, described by Finance Minister Bruno Le Maire as ensuring “fiscal justice”, is expected to become effective starting Jan. 1.

French President Emmanuel Macron got support from the European Union’s competition chief Margrethe Vestager, who has imposed major fines on companies including Apple Inc. and Alphabet Inc. In an interview with France Inter on Monday, she said the best solution for taxing large Internet companies was to start in Europe.

“The best thing is a global solution, but if we want solutions in a reasonable time, then Europe must step forward,” said Vestager, who is in Paris and plans to meet with Macron’s chief of staff. “France is showing the way.”

Details on the proposed French tax:
**> **
> * The tax is due in April of each year, and is to be paid in two installments. In 2019, both installments will be due in late October, according to the bill.
> * The French government will tax online marketplaces, the sale of data for targeted advertising, and the sale of targeted online advertising.
> * The tax is to be pro-rated based on the number of users companies have in France, but there is no information about how this would be calculated.
> * Activities that won’t be taxed are direct e-commerce retailing, messaging or payment apps, and online advertising that doesn’t involve user data.
> * Companies will be allowed to offset the tax against French corporation tax.
> * The government said the tax will be an interim measure applied until a global consensus on taxing the digital economy is reached.
> * The measure is expected to bring in 500 million euros annually.
> * Lawmakers in Macron’s government are considering 3-year sunset clause.

https://www.bloomberg.com/news/articles/2019-04-08/macron-aims-to-force-tax-justice-on-facebook-google-and-apple

This can be offset against French Corp tax, but presumably their argument is that Amazon, Google, facebook etc. are currently paying little in French Corp tax


#649

Paschal the rascal giving the heads up

Donohoe expecting big changes in global corporation tax rule

The Minister for Finance says there is going to be a big shakeup in global corporation tax rules over the next 18 months.

Paschal Donohoe said he is expecting a renewed push by the US and European governments to change the way digital companies are taxed.

With many of the leading US digital companies resident in Ireland for international tax purposes, Mr Donohoe said it is important that Ireland does not get caught in a tax dispute that could impact on trade and investment decisions by multinational companies.

Mr Donohoe made his comments at the Global Tax Policy Conference at Dublin Castle today.

https://www.rte.ie/news/business/2019/0523/1051208-donohoe-tax-conference/