Ireland's corporation tax is *higher* than France's

Dionysus

I've just got around to reading Colm Keena's article, 'Corporation tax: unravelling the myths' in The Irish Times (11 February). Keena has some pretty astounding research. I was looking for the graph that was in the paper version of the article and it seems the article has been republished in newspapers across the world.

Anyway, the highlights:

1. While in Ireland the nominal corporation tax rate is 12.5%, Ireland's effective corporation tax rate is 11.9%.

2. While France's nominal corporation tax rate is 34.43%, its effective corporation tax rate is only 8.2%

Given Sarkozy's comments about the "low" Irish corporation tax rate, this reality of the French corporate tax rate makes Sarkozy out to be either a) ignorant of the reality, or a cute hoor.

Other European corporation tax rates include

3. Belgium: nominal tax rate: 33.99%
effective tax rate: 4.8%

4. Germany: nominal tax rate: 30.18%
effective tax rate: 22.9%

5. Luxembourg: nominal tax rate: 28.59%
effective tax rate: 4.1%

6. Switzerland: nominal tax rate: 21.17%
effective tax rate: 8.9%

7. UK: nominal tax rate: 28%
effective tax rate: 23.2%

8. Greece: nominal tax rate: 24%
effective tax rate: 13.9%

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Keena was pointing out that it suits the IDA to portray Ireland as a low-tax economy but that, in reality, as these figures show there are countries in Europe with lower corporation tax rates than Ireland. Interestingly, for all the giving out people in Europe do about the US, the nominal US corporation tax rate is 39.21%, while the effective US corporation tax rate is 27.6%, much, much higher than "socialist" France.

phasers

Why does the word higher have ** around it

squod

Don't call sarkozy cute, he'll just try and ride you.

El Weirdo

TL;DR

I'm higher than France.

bonerm

How is effective corporation tax rate calculated?

El Weirdo

bonerm wrote: »

How is effective corporation tax rate calculated?

Effectively.

bonerm

El Weirdo wrote: »

Effectively.

You could have also used "with a calculator".

brianthebard

Ireland's effective corporate tax rate for Google and many other mnc's is 4% and less.

hardCopy

Mods, please delete this before Google or Intel see it.

El Weirdo

bonerm wrote: »

You could have also used "with a calculator".

Damn!

But in my defence, can I refer you to my first post in this thread?

msg11

I pay tax. I pay lot's of tax. Low tax in Ireland? You having a laugh , not even the MNCs escape the FF .

ilovesleep

This is horrific.
Reports in the papers says that the EU are pissed off at irelands CT tax and merkel says that negotation of the bailout loan will only happen on their terms, for example a small reduction in interests repayments for an increased CT. Increasing CT would mean that companies will up and leave, so that the reduced interest rates and higher CT will cancel each other out.

They are really backing us into a corner here and forcing us to default.

jdooley28

Most would reckon irelands EATR is higher than the nominal 12.5%. If any of these figures effectibe tax rate figures are correct my thesis is ruined!!

ejmaztec

This thread's far too taxing for AH armchair economists. Can't we get back to calling Sarkozy a midget, like in the good old pre-complication days?

epgc3fyqirnbsx

I would love to see Sarkosy pipe up about our corp rate again and then see some a campaign of advertisements in national papers across Europe showing what France's actual rates work out as

K-9

Jaysus the UK must be wondering where its 23.2% went:

Google saved $3.1bn in taxes in past 3 years using 'Double Irish ' scheme; Google has paid no tax in UK since 2007 - - one of its biggest overseas markets

force eleven

Ireland should leave the EU. Fulfil our loan obligations first, and during that time, formulate our get out strategy. Referendum within five years. We're better off as an associate member. Simples.

danniemcq

Dionysus wrote: »

I was looking for the graph that was in the paper version of the article and it seems the article has been republished in newspapers across the world.

Great now all big companies will know

All the IDA's hard work work effort ummmmm foreign trips are in vain