Corporate Tax is a joke the Double "Irish"

20Cent

Looks like out wonderful multinationals aren't even paying the 12.5% corporation tax here due to loopholes. Our next budget will be hitting the poorest in the country while the richest will be untouched. Wonder how many other companies are doing this. Most I imagine. These loopholes should be addressed.

The Tax Haven That's Saving Google Billions
Google uses a complicated structure to send most of its overseas profits to tax havens, keeping its corporate rate at a super-low 2.4 percent.
http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm

When a company in Europe, the Middle East, or Africa purchases a search ad through Google, it sends the money to Google Ireland. The Irish government taxes corporate profits at 12.5 percent, but Google mostly escapes that tax because its earnings don't stay in the Dublin office, which reported a pretax profit of less than 1 percent of revenues in 2008.

The_Thing

Found this via Slashdot earlier: http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-revenue-lost-to-tax-loopholes.html

Amhran Nua

Rather than being outraged, lets look at the 1700 jobs they have created and the small percentage of tax they pay on every Google transaction outside of America and Asia, which is still a lot better than nothing. Meanwhile it costs us zero euros and zero cents to get this benefit. And here was me wondering about cutting the corporate tax rate. Whats that in income taxes and VAT, close to €20 million per year?

bleg

I'd be in favour of cutting Corporation tax by up to 2.5% as a means of keeping and attracting FDI.

The pharmaceutical/medical devices sector is keeping this country afloat.

ei.sdraob

Amhran Nua wrote: »

Rather than being outraged, lets look at the 1700 jobs they have created and the small percentage of tax they pay on every Google transaction outside of America and Asia, which is still a lot better than nothing. Meanwhile it costs us zero euros and zero cents to get this benefit. And here was me wondering about cutting the corporate tax rate. Whats that in income taxes and VAT, close to €20 million per year?

Google is one of the companies mine works with, they have quite a nice crowd there in Dublin, quite a bit more than a money laundering operation which the OP implies.
The likes of Cyprus have a lower rate and are in EU too, dont give any more excuses for large companies to move there from here, it will take the only healthy bit of the economy that remains and burn it.

Anyways if taxes go up more I definitely be moving some of business out of here, considering that here i am busting balls bringing most of the money in from abroad and then spending it locally,
i have no patriotic duty to our new Anglo Irish Republic :rolleyes:

Amhran Nua

bleg wrote: »

I'd be in favour of cutting Corporation tax by up to 2.5% as a means of keeping and attracting FDI.

From the sounds of it, the effective corporation tax is around 2.5%. And really when you tot up the corporation tax they do pay, along with PRSI and other non-negotiable contributions, these fiendish leeches on the underbelly of our socially aware system are probably dropping the guts of a hundred million a year on the place. The swine. That'll pay for a few quangos wha.

The worst news about this thread is that the bloody IRS might act to plug up the leak since it's plastered all over Business Week, if the EU doesn't beat them to the finish line.

ei.sdraob wrote: »

Anyways if taxes go up more I definitely be moving some of business out of here, considering that here i am busting balls bringing most of the money in from abroad and then spending it locally,

Maybe you should just have a quiet word with Google's accountants instead?

ei.sdraob

Amhran Nua wrote: »

Maybe you should just have a quiet word with Google's accountants instead?

They sure have better accountants than mine

murphaph

bleg wrote: »

The pharmaceutical/medical devices sector is keeping this country afloat.

No no, you've got it all wrong...it's the heavily unionised types that, oh, wait.

I think the rate at 12.5% is right where it needs to be. It's not our high corporate tax rate that is steadily losing us jobs to other countries, it's how much we want to charge for our labour. Whether we like to admit it or not, we are competing with the likes of Poland for these precious jobs now. We fcuked up the Tiger and failed miserably to promote domestic industry, so now we suck it up and work for less.

Ireland is basically nothing special. It has potential, but people aren't prepared to pay over the odds for the blarney anymore.

dunsandin

murphaph wrote: »

No no, you've got it all wrong...it's the heavily unionised types that, oh, wait.

I think the rate at 12.5% is right where it needs to be. It's not our high corporate tax rate that is steadily losing us jobs to other countries, it's how much we want to charge for our labour. Whether we like to admit it or not, we are competing with the likes of Poland for these precious jobs now. We fcuked up the Tiger and failed miserably to promote domestic industry, so now we suck it up and work for less.

Ireland is basically nothing special. It has potential, but people aren't prepared to pay over the odds for the blarney anymore.

Is that the new name for the Biffo,Lenno & Harney triumverate? The Blarney government. What about Coughlan- how about Blarney & Co. It does have a ring to it.

ei.sdraob

Now that i mentioned Anglo Irish :eek:

Anglo has same construction
-> In Amsterdam they set up 'Anglo Irish Capital Funding Limited ', no employees only 2 token directors
-> Parent company of that resides in Bermuda

http://www.thepropertypin.com/viewtopic.php?f=19&t=33723

johnnyskeleton

Amhran Nua wrote: »

Rather than being outraged, lets look at the 1700 jobs they have created and the small percentage of tax they pay on every Google transaction outside of America and Asia, which is still a lot better than nothing. Meanwhile it costs us zero euros and zero cents to get this benefit. And here was me wondering about cutting the corporate tax rate. Whats that in income taxes and VAT, close to €20 million per year?

Let's also not forget the increase in notional GDP, which is oh so important when it comes to explaining to the EU why our deficit is ~13% (of GDP) rather than ~16% (of GNP).

FreudianSlippers

bleg wrote: »

I'd be in favour of cutting Corporation tax by up to 2.5% as a means of keeping and attracting FDI.

The pharmaceutical/medical devices sector is keeping this country afloat.

Exactly - and people who don't see this are missing the big picture.

20Cent

bleg wrote: »

I'd be in favour of cutting Corporation tax by up to 2.5% as a means of keeping and attracting FDI.

The pharmaceutical/medical devices sector is keeping this country afloat.

You might as well make it 2.5% because thats all they are paying anyway.
They even have a name for screwing the Irish taxpayer the Double "Irish". No wonder they had a laugh at Brian Lenihan and made monkey noises at him. Set up in Ireland take the piss...............They'l pay up even when you invest in crap like Anglo.

20Cent

ei.sdraob wrote: »

Anyways if taxes go up more I definitely be moving some of business out of here, considering that here i am busting balls bringing most of the money in from abroad and then spending it locally,
i have no patriotic duty to our new Anglo Irish Republic :rolleyes:

All the best left years ago you're a bit late. Still the Irish passport will be handy and be sure to make use of our embassies and tax scams.

20Cent

Amhran Nua wrote: »

From the sounds of it, the effective corporation tax is around 2.5%. And really when you tot up the corporation tax they do pay, along with PRSI and other non-negotiable contributions, these fiendish leeches on the underbelly of our socially aware system are probably dropping the guts of a hundred million a year on the place. The swine. That'll pay for a few quangos wha.
The worst news about this thread is that the bloody IRS might act to plug up the leak since it's plastered all over Business Week, if the EU doesn't beat them to the finish line.


Maybe you should just have a quiet word with Google's accountants instead?

Any source for "probably a hundred million"?
Wouldn't surprise me if they were costing us money.

Amhran Nua

20Cent wrote: »

No wonder they had a laugh at Brian Lenihan and made monkey noises at him.

The people lolling it up at Lenny, as well they might, were the bond market red braces types. Google is a marketing and technology company. Different people entirely.

20Cent wrote: »

Any source for "probably a hundred million"?
Wouldn't surprise me if they were costing us money.

You'll find no support for the righteous far left invective from anyone with a clue, my friend. They're employing 1700 people, probably on a decent wage, thats in the region of €20 million in direct income taxes. Employer's contribution and so on probably another €10 million. Laundering Google's entire profits for the EMEA region, €40 to €60 million. And that's if you don't look at the multiplier effect on the local economy as people working for Google spend their wages, which come from all over the EMEA, making this an export-type business.

Jesus Wept

The_Thing wrote: »

Found this via Slashdot earlier: http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-revenue-lost-to-tax-loopholes.html

When you hear the term 'Dutch sandwich', you're hopes are far higher.

thoker

So they get their employees to pay THEIR taxes whole not even paying their own low compared to the US corporate rate. Please spare me this pathetic excuse. if they paid what the should pay YOU would pay less tax, less cuts and more hospital staff. Google are just another greed driven company who want to avoid paying their taxes.

ardmacha

Google are just another greed driven company who want to avoid paying their taxes.

Yes. But there are our greed driven company!

TheInquisitor

thoker wrote: »

So they get their employees to pay THEIR taxes whole not even paying their own low compared to the US corporate rate. Please spare me this pathetic excuse. if they paid what the should pay YOU would pay less tax, less cuts and more hospital staff. Google are just another greed driven company who want to avoid paying their taxes.

Google would simply not be here if they were paying more tax.

Also lets say they are paying only 1 or 2% of their Corp tax in Ireland. Its income from the whole world. Everyone else is loosing out and we're winning. Its a damn sight better to get 2% of world income than 12.5% of Irish income!