Ireland is the world’s biggest corporate ‘tax haven’, say academics.. estimates that foreign multinationals shifted $106 billion (€90 billion) of corporate profits to Ireland in 2015.
This was more than all of the islands of the Caribbean combined https://t.co/3DBRSpKKja— Rory Hearne (@RoryHearne) June 30, 2019
Profits.
Not people.
The research from academics at the University California, Berkeley and the University of Copenhagen estimates that foreign multinationals shifted $106 billion (€90 billion) of corporate profits to Ireland in 2015.
This was more than all of the islands of the Caribbean combined ($97 billion/€83 billion), and well ahead of Singapore ($70 billion/€60 billion), Switzerland ($58 billion/€49 billion) and the Netherlands ($57 billion/€48 billion), according to the researchers.
“By our estimates, Ireland is the number one shifting destination,” the paper states.
Until the 1990s, Ireland used to collect relatively little corporate tax revenue, about 1.5 per cent to 2 per cent of national income – significantly less than the US,” the paper says.
“Then, as profit shifting surged, so did tax collection: since the mid 1990s, Ireland has collected significantly more corporate tax revenue (as a fraction of national income) than the US – about twice as much in 2015.
Meanwhile…
The Department of Finance said:
“Ireland is not a ‘tax haven’ and does not meet any of the international standards for being considered such.”
Ireland is the world’s biggest corporate ‘tax haven’, say academics (irish Times)
So that’s why they’ve put Copper Faced Jacks up for sale!
We’ve got another decade or two of it at max before the OECD/EU, justifiably, force a change in tax regime and/or more international agreements. Hopefully our economy will have diversified enough by then…
Or 12 months because Boris will introduce the same tax rate.
Anyone know how much corporation tax Energia (aka Viridian, aka i^2) paid in Ireland last year? Richard Bruton was standing proudly with them this morning to announce €3bn of investment (by them hopefully, though knowing FG, I’d be concerned at what this is going to cost the taxpayer).
https://www.energiagroup.com/globalassets/document-library-2/energiagroup_taxstrategy.pdf
Good. Let’s make the most of it.
i’d be fine with it if the government capitalised on it by at least charging the full 12.5% corporate tax rate so we could at least generate revenue from it to help our health system, housing crisis etc., instead of just lettin them all at it for absolutely eff all.
they wouldn’t be here if we charged them 12.5% on all their earnings outside Ireland – a good amount of that is eventually repatriated to the US too
we made over 10bln in corp tax last year – hardly “eff all”
The Department of Finance should have stamped their foot when they made that statement…
We prefer the term “money funnel”