OECD Warns Ireland

edward2222

Credit to: Tax Avoidance News : OECD Warns Ireland That Growth Will Take More Than Just Low Taxes

Ireland has among the lowest taxes in Europe. However, the Organization for Economic Cooperation and Development (OECD) is not impressed. They warned Ireland that it will have to spend more time selling itself in the new era of global tax transparency if it wants to experience meaningful economic growth.

OECD chief economist Catherine Mann has said that moves by the Irish government designed to better align its taxable profits with real economic activity might initially sting. However, these are just the types of changes called for under the OECD’s Base Erosion and Profit Shifting (BEPS) initiative.

The sting would arise from the large number of multinationals based in Ireland for tax planning purposes, she said. Ireland has been at the center of a multinational tax controversy thanks to aggressive tax avoidance strategies used by huge companies like Apple and Google.

hhhhmmm your thoughts guys?

Tangatagamadda Chaddabinga Bonga Bungo

From my understanding it is deeply flawed and unfair to single out Ireland's tax advantage here.

You have Germany gaining a massive advantage being at the centre of a single currency. From what I've read, they've gained the most from Euro membership as they've been able to keep their exports competitive thanks to the Euro.

You have tax havens in the middle of Europe like Monaco which seems to only exist to attract wealthy individuals away from their home countries to avoid paying income tax there.

You have Poland getting over 200 billion Euro in EU subsidies to help grow its economy. More than the entire cost of the Marshall Plan in todays dollars.

One of Irelands few billionaires is a tax resident of Malta. I'm aware that they have targeted Malta too but he'll probably just become a tax resident somewhere else if they get leaned on more heavily.

Then you have Switzerland who seems to benefit massively by the EU but isn't even a member. It also makes up its own rules entirely with regards taxation and banking.

I'm sure there's plenty more of these 'anomalies' about.

Looking at this from an Irish perspective I'd want a completely fair and level playing field before we even talk about Google and Apple being here.

We can't have a situation where some tax/economic policies are more fair for some but not for others.

It needs to be totally fair, or left as is.

Mr. Incognito

Apple and Google have huge operations here and their tax residence is alligned to their economic presence.

The OECD is targeting Brass Plate operations. Ireland's rules on what constitues trade for corporation tax purposes requires operations of substance.

Noddy Subsistence Rights is the caselaw on this point.

Ireland is at no risk from this OECD report.

And you are posting a link to an offshore site that sells these packages so it is in their interest to mis-interpret the facts, which they have to sell their own product.