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Bodd
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International Tax-Dodgers
- Thread starter JohnD
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What of, Russians less than half my age built like brick ****houses? No, I’m not that stupid!
"Washington’s bid to break OECD talks deadlock threatens to put tax havens out of business"
And a good thing too.
https://www.ft.com/content/b358ebca-4097-4cd6-bc7f-8e9d8f069250
"According to data from the OECD, the average headline corporate tax rate in advanced economies has fallen from 32 per cent in 2000 to just over 23 per cent by 2018. That is largely because smaller countries such as Ireland, the Netherlands and Singapore have attracted footloose businesses by offering low corporate tax rates. Multinational companies with increasingly intangible assets such as the global tech firms have shifted some actual business and a lot of profits into these tax havens and low-tax jurisdictions, lowering their global tax bills. But that has fuelled competition among other countries to lower their tax rates too, in a bid to keep businesses operating locally. As a result, said Alex Cobham, chief executive of the Tax Justice Network pressure group, “we’ve had more than three decades of a corporate tax race to the bottom, [and] it’s time to turn that around”.
And a good thing too.
https://www.ft.com/content/b358ebca-4097-4cd6-bc7f-8e9d8f069250
"According to data from the OECD, the average headline corporate tax rate in advanced economies has fallen from 32 per cent in 2000 to just over 23 per cent by 2018. That is largely because smaller countries such as Ireland, the Netherlands and Singapore have attracted footloose businesses by offering low corporate tax rates. Multinational companies with increasingly intangible assets such as the global tech firms have shifted some actual business and a lot of profits into these tax havens and low-tax jurisdictions, lowering their global tax bills. But that has fuelled competition among other countries to lower their tax rates too, in a bid to keep businesses operating locally. As a result, said Alex Cobham, chief executive of the Tax Justice Network pressure group, “we’ve had more than three decades of a corporate tax race to the bottom, [and] it’s time to turn that around”.
Indeed...
But it won't do much for the UK plan to establish 'Freeports' will it...
And maybe one of the reasons that Biden isn't that bothered with that UK trade deal ( one of those 'easiest in history' ones apparently) as he seems to prefer to deal with the EU who also share that goal...
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I'm surprised that you don't seem to understand Irelands status? Don't you work in FinTech?
All the big Tech firms use Ireland as their distribution and sales location. It's not just Apple. Almost their entire economy is built around serving other people's markets. In my line of work we ran stuff through Denmark for the same reason. Slap a royalty fee on the sub for using some spurious IP and route the payment via Denmark to avoid local corporation tax on Profit.
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I perfectly understand Irelands status and the use of transfer pricing and other schemes like the Dutch Sandwich.
The point I made was the EU is both too lax and too controlling for some. No consistency.
All tax havens need to be dealt with. They distort the market.
Rather like the '1.12 square mile' does the same for the UK
The EU had been trying to push through a common tax policy for all its member states.
The Irish drove a coach and horses though that.
After the Irish rejection of the first Lisbon treaty in 2008 the Irish managed to persuade the EU to make key changes to the original draft.
These concessions meant that Ireland retained control over tax policy, military neutrality and abortion law.
After a 2nd referendum in which the Irish voted to ratify the Lisbon treaty meant that they would continue to have a competitive edge over states by undercutting them.
This is why Ireland won their appeal against the EU order to collect 13 billion Euros in back taxes from the Apple corporation.
Ireland is maybe more of a launderette for the profits of multinationals than a haven.
Ireland is probably more of a launderette for the profits of the corporates rather than a haven.
let's suppose, under a new regime, Amazon does a billion Euros worth of business in France
And France charges Amazon a hundred million Euros of tax.
Regardless of profits being allocated to an Irish account.
What is Ireland going to do to help Amazon avoid it?
All depends what the rules are under a new regime.
As far as i know these corporations were allowed to process profits made in other countries through the Irish tax system.
I have not said otherwise.
but it is expected that they will be required to pay tax in the countries where they do business, regardless of that.
Apart from tax dodging, do you know another reason for syphoning profits through Ireland and other tax havens?
You don't, seriously, expect that they will want to pay tax in Ireland, in addition?
The govt of ROI is already alarmed at the prospect.
"Planned EU rules for country-by-country tax reporting by multinationals would have “serious implications” for Ireland’s competitiveness and ability to attract investment to the country, according to a Department of Enterprise, Trade and Employment briefing.
The briefing said it was “strongly recommended” that Minister of State Robert Troy should make an intervention to oppose the tax changes at a public debate.
The EU wants the new law to force multinationals to report their tax payments and activities for each member state to increase transparency.
However, a departmental briefing warned this would not benefit Ireland and was likely to impact investment from inside and outside the EU."
https://www.irishtimes.com/business...have-serious-implications-for-state-1.4532944
"Planned EU rules for country-by-country tax reporting by multinationals would have “serious implications” for Ireland’s competitiveness and ability to attract investment to the country"
or, to put it another way
"losing the ability to profit from the activities of tax dodgers may mean that Tax Havens lose their advantage"
or, to put it another way
"losing the ability to profit from the activities of tax dodgers may mean that Tax Havens lose their advantage"
Under Lisbon treaty 2, Ireland was granted the right to keep control of its tax policy.
This allowed Ireland to continue colluding with multinationals to avoid tax.
How do they reconcile this behavior with their image as a Europhile state.
Ireland is now in talks with other EU states with a view to killing off these proposed new transparency laws.
Quote..
Ireland has consistently opposed the changes because it is considered a tax measure, which the Government claims should be dealt with using different legislation and by finance ministers.
This would mean unanimous support would be required rather than a qualified majority, meaning the new laws could be vetoed by a member state.
This allowed Ireland to continue colluding with multinationals to avoid tax.
How do they reconcile this behavior with their image as a Europhile state.
Ireland is now in talks with other EU states with a view to killing off these proposed new transparency laws.
Quote..
Ireland has consistently opposed the changes because it is considered a tax measure, which the Government claims should be dealt with using different legislation and by finance ministers.
This would mean unanimous support would be required rather than a qualified majority, meaning the new laws could be vetoed by a member state.
France, for example, got fed up waiting for other countries to agree to act against international tax-Dodgers, and acted alone.
Ex-president Trump thought that, for American-owned companies, taxpaying should be optional.
If other countries wish to levy taxes on companies that do business within their borders, how will Ireland stop them?
Ex-president Trump thought that, for American-owned companies, taxpaying should be optional.
If other countries wish to levy taxes on companies that do business within their borders, how will Ireland stop them?