Will Ireland's corporation tax survive?


#485

Latest EU musings on tax “harmonization”

europarl.europa.eu/sides/getDoc.do?pubRef=-%2f%2fEP%2f%2fTEXT%2bREPORT%2bA8-2016-0189%2b0%2bDOC%2bXML%2bV0%2f%2fEN&language=EN

The amendments are particularly interesting. Very thorough plugging of every single loophole.

If the amendments are passed and implemented that’s the end of every single MNC tax wheeze in Ireland. Transfer pricing, ip and royalty payments merry go rounds, brass plate operations, the works. In other words 60% of GDP…


#486

Our biggest threat is from the UK - 10 years ago the gap was 17,5% (30v12,5%) - very soon it will be 4,5% AND all other ways of eroding the Irish base will be gone - Furthermore UK anti avoidance means so many businesses will choose UK over Ireland - we simply lack the necessary skill set In so many areas and the horrible marginal rates of personal tax don’t help


#487

The European Parliament has no power to proceed with tax harmonisation. One particular EP Committee commenting and putting wish lists to Council of what they would like to see in a Council decision relating to MS taxation does not mean that said comments and amendments are about to be implemented. Read the Treaties!


#488

I was more interested in the tone and tenor of the amendments. The original document was very anodyne. The amendments obviously written by those who knew what they were talking about. The ping pong continues but covering very different ground from 10 or 20 years ago. Sooner or later the US MNCs are going to get squeezed. Especial if the US lurches into defacto isolationism. There is about a 30 year cycle for what is “normal”. I think we may be due another flip to a new “normal”. Which may be much more like the tax regime of the 1960’s and 1970’s.


#489

Facebook hit with “material” IRS claim for 3bn-5bn (plus interest and penalties) over transfer of assets to Ireland

bloomberg.com/news/articles … eland-move


#490

Story also carried by the Daily Mail website, describing Ireland as “a low-tax haven for corporations”
[Reader bias warning: the Daily Mail group is registered within walking distance of City of London, identified by an IMF report as “the world’s largest tax haven”]

dailymail.co.uk/news/article-3716616/It-s-complicated-Facebook-admits-owe-Uncle-Sam-5billion-IRS-investigation-proves-company-avoiding-taxes-2010-Ireland-transfer.html


#491

+1

EU law is actually quite simple for the laywoman to get the hang of.

Amazing how many get it wrong (cf Brexit debate, etc)


#492

It is a wish list, but it has already been voted by the European Parliament, agreed by the council and published in the Official journal of the EU:
eur-lex.europa.eu/legal-content/ … 16:193:TOC

It asks for the Commission to publish an ambitious CCCTB proposal as soon as possible.

I would be interested to know how the council vote went on this. The environment is going to be more hostile to Ireland with departure of the British.


#493

We can just start giving all sorts of exemptions and loopholes like the French and Germans do


#494

And that is why the cage will be rattled but nothing happens. Much larger entities in the big EU countries would have their favourable tax offsets scrutinized. We low but we’re low for everyone.


#495

The US Treasury Department has upped the pressure on Europe over the Commission’s investigations into the tax relationship between five large companies and a number of EU member states.

In a white paper issued on its website, the Treasury Department calls on the Commission not to impose recoveries in a retroactive manner from the companies under investigation, including Apple, Starbucks and McDonald’s.

More

rte.ie/news/business/2016/08 … rope-over/


#496

Ruling from Europe due in the next few days. Amount of back taxes has been revised downwards, possibly as low as €100m.

irishtimes.com/news/ireland/ … -1.2771321

At those levels the government could probably find a way to give it back to Apple in employment or construction grants. I’m sure it’s a coincidence that Apple’s new data centre just go the go-ahead.


#497

All the reporting around Apple is basically “uh-oh, we might be able to claim a huge tax settlement from Apple, that’s bad news”.
Says a lot for the shape of the world and the balance of power.


#498

Latest conditioning exercise leak is the number will be in the billions :open_mouth:
Surely Noonan or the head of Revenue have to walk the plank ?
We’ve had tribunals and Judicial Inquiries about less :open_mouth:


#499

You think big Mickey thought up this deal? “Surely Jurry has to go now”…

I agree, though, that the origins of the deal should be exposed…


#500

By time the tribunal is done 20 years later everyone would have forgotten about it, few barristers would much richer, and Apple might no longer exist or be relevant as a company.

Please no more tribunals


#501

€13bn in back taxes, Joe!


#502

Tony Connelly ‏@tconnellyRTE 6m

BREAKING: Commission to say “selective treatment” allowed Apple to pay tax rate of 1pc on EU profits in 2003 down to 0.005 per cent in 2014.

BREAKING: @EU_Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. News conference due in 20 mins


#503

europa.eu/rapid/press-release_IP-16-2923_en.htm

The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland must now recover the illegal aid.

Commissioner Margrethe Vestager, in charge of competition policy, said: “Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules. The Commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014.” …


#504

good for the country’s coffers XD