Tax avoidance by Multinationals benefit Ireland?

WIZE

Will this investigation into Tax avoidance benefit Ireland going forward. As in the UK the argument against Google is that It was their UK office made the sales so the Tax should be paid in the UK.

Would this be a large mistake from the Governments as Multinationls could close all there offices around Europe and run everything from Ireland as Alot of them have their EMEA HQ here and create more Jobs in Ireland

OU812

There's a possibility that could happen & we should certinally hope so, however I suspect that American companies will be offered tax deals to come back home

Specialun

The likes of the UK are the yanks are looking to force ireland to act on this but not willing to investigate properly themselves.

WIZE

well due to the Market share they have in EMEA im not sure that would be possible for them

kneemos

Be glad Bush is still not in charge or we would be part of his axis of evil.

TheUsual

Leave Bono alone !!!

hfallada

One possibility which is very possible for technology firms is close their American offices and move completely to Ireland. They have a large amount of employees here anyway and NYC is fairly close on a plane. Plus the Irish Government lets them do whatever they want no questions asked.

donvito99

I think our fixation with this 12.5% rate is quite sad actually.

Cody Pomeray

No, there is no credible reason to believe this will of any substantial or noticeable benefit to Ireland.

The bottom line is that we only benefit from Google's Permanent Establishment here in the form of jobs.
Those international profits that are collected in Ireland are "re-paid" to another google CFC (subsidiary) in the form of royalty payments and are not eligible for taxation in this jurisdiction, they go to Bermuda via Holland iirc.

A small amount of tax accrues to us but not much. This won't change that.

Banjo String

While good auld Paddy gets chucked in jail for not paying his tv license.......

Wompa1

hfallada wrote: »

One possibility which is very possible for technology firms is close their American offices and move completely to Ireland. They have a large amount of employees here anyway and NYC is fairly close on a plane. Plus the Irish Government lets them do whatever they want no questions asked.

That would never happen.

WIZE

Cody Pomeray wrote: »

No, there is no credible reason to believe this will of any substantial or noticeable benefit to Ireland.

The bottom line is that we only benefit from Google's Permanent Establishment here in the form of jobs.
Those international profits that are collected in Ireland are "re-paid" to another google CFC (subsidiary) in the form of royalty payments and are not eligible for taxation in this jurisdiction, they go to Bermuda via Holland iirc.

A small amount of tax accrues to us but not much. This won't change that.

But its the jobs that would be very benefical for Ireland

Archeron

kneemos wrote: »

Be glad Bush is still not in charge or we would be part of his axis of evil.

I don't think it's that bad. While we aren't quite axis of evil, we could certainly make the axis of not quite evil, but certainly won't be asked to host the Olympics anytime soon, or perhaps the axis of countries who everybody else ignores at the UN Christmas party.

My name is URL

SamHall wrote: »

While good auld Paddy gets chucked in jail for not paying his tv license.......

Do you think that would be any different if corporations were paying their full dues?

The CT intake; even if realised in full and with no avoidance by companies, would make up a tiny % of overall revenue.

The only argument against corporate tax-avoidance is one based on principle. And on principle, I think most people would prefer to see a few companies jump through a few hoops rather than see thousands of jobs and the extant economies they support just disappear.

Cody Pomeray

WIZE wrote: »

But its the jobs that would be very benefical for Ireland

Sure. The people working in these jobs are often coming in from abroad anyway; they spend extra in the economy alright but like I said, this is of negligible benefit to Ireland overall.

An grown-up taxation strategy underpinned by a viable industrial base would be more ideal than this silly profit manipulation racket we have going on, whose days are numbered anyway

Banjo String

My name is URL wrote: »

Do you think that would be any different if corporations were paying their full dues?

The CT intake; even if realised in full and with no avoidance by companies, would make up a tiny % of overall revenue.

The only argument against corporate tax-avoidance is one based on principle. And on principle, I think most people would prefer to see a few companies jump through a few hoops rather than see thousands of jobs and the extant economies they support just disappear.

Not the point.

FG/Lab have repeatedly shown leniency towards banks/bondholders/multi nationals with debts, tax avoidance etc.

Yet they consistently and repeatedly squeeze the life from the very citizens they supposedly work for. Many already tinkering on the edge of poverty, negative equity, out of work etc.

Our leaders have a warped mind of what is right and what is wrong at times.

Specialun

Should we tax the ****e out of them so sam?

bgrizzley

Specialun wrote: »

Should we tax the ****e out of them so sam?

They should tax them the way they tax the rest of us. A sneaky tax on offices here, a sly "charge" on business flights there, a small "licence" on rubber stamps, maybe a little "levy" on staplers to round it off.
Before you know it they would be paying so much tax they couldnt dream of escaping "Ireland of the thousand taxes".

Cork24

OU812 wrote: »

There's a possibility that could happen & we should certinally hope so, however I suspect that American companies will be offered tax deals to come back home

I don't think so, to make it in Europe you need to have a base within Europe.
Can't run a business for European customers on American Time Zones

Celly Smunt

Cork24 wrote: »

I don't think so, to make it in Europe you need to have a base within Europe.
Can't run a business for European customers on American Time Zones

This.I worked for a large enginering firm over in the states and the amount of waste they paid in overtime and extra pay due to night shifts was extraordinary because of the need for the company to communicate directly with Europe in real time.It probably would've been cheaper for them to re-locate to europe.