Pfizer tax

corkonion

Pfizer are completing a merger with Irish based Allergan to make the largest pharmaceutical company in the world. American politicians are furious about this inversion which will see the new company domiciled in Ireland, further eroding the US tax base. Even though our corporate tax rate is very low this announcement is great news for the Irish exchequer as this companies multi billion $ sales will make a significant contribution to our economy.

AlmightyCushion

Arstechnica done a story on this and described Allergan as a 'small dublin based company' as if it was some tiny company with 4 employees run out of a shed as opposed to a major multinational with a market cap of over $100 billion.

Eric Cartman

people complaining that Ireland is a tax haven, Irish politicians rushing to claim we're not a tax haven.

Like other small Island nations, I think its time we became a tax haven. If it brings in investment like this , its a win win for us.

Geuze

corkonion wrote: »

Pfizer are completing a merger with Irish based Allergan to make the largest pharmaceutical company in the world. American politicians are furious about this inversion which will see the new company domiciled in Ireland, further eroding the US tax base. Even though our corporate tax rate is very low this announcement is great news for the Irish exchequer as this companies multi billion $ sales will make a significant contribution to our economy.

It will have very little impact on the Irish public finances.

It may even cost us more EU conts.

See here:

http://economic-incentives.blogspot.ie/2015/11/pfizers-inversion-cui-bono.html

and here:

http://economic-incentives.blogspot.ie/2015/11/sound-arithmetic-shocking-logic.html

OMD

Geuze wrote: »

It will have very little impact on the Irish public finances.

It may even cost us more EU conts.

See here:

http://economic-incentives.blogspot.ie/2015/11/pfizers-inversion-cui-bono.html

and here:

http://economic-incentives.blogspot.ie/2015/11/sound-arithmetic-shocking-logic.html

Good articles.

ancapailldorcha

Eric Cartman wrote: »

people complaining that Ireland is a tax haven, Irish politicians rushing to claim we're not a tax haven.

Like other small Island nations, I think its time we became a tax haven. If it brings in investment like this , its a win win for us.

I don't know if I'd go so far as to say we should become a "tax haven" akin to the Isle of Man or Guernsey. This is definitely good news for Ireland though.

NIMAN

Geuze wrote: »

It will have very little impact on the Irish public finances.

It may even cost us more EU conts.

See here:

http://economic-incentives.blogspot.ie/2015/11/pfizers-inversion-cui-bono.html

and here:

http://economic-incentives.blogspot.ie/2015/11/sound-arithmetic-shocking-logic.html

I listened to a piece on the radio yesterday that said this might add $6billion annually to the Irish tax take.

sonny.knowles

NIMAN wrote: »

I listened to a piece on the radio yesterday that said this might add $6billion annually to the Irish tax take.

Annually or over how many years?

Geuze

NIMAN wrote: »

I listened to a piece on the radio yesterday that said this might add $6billion annually to the Irish tax take.

Some people wrongly suggested that CT would rise by 620m, but that is wrong, as shown on Seamus Coffey's blog.

newacc2015

Eric Cartman wrote: »

people complaining that Ireland is a tax haven, Irish politicians rushing to claim we're not a tax haven.

Like other small Island nations, I think its time we became a tax haven. If it brings in investment like this , its a win win for us.

The US government says its not a tax haven. Its tax friendly like the Netherlands or Switzerland. We arent offering a secret deal. They are using our tax laws to lower their tax bill. An American company tried to do the same thing with a British company last year. In your opinion due to that, is the UK a tax haven too?

Allegen has a proper presence in Ireland. They arent a post box in the IFSC. They have a few major factories here and in a better financial position than Pfizer ie they less geared.

Eh? What more investment can we get? We have a majority of all major technology and IT firms here. We have a relatively large investment banking industry. We have a fair share of factories for a tiny country

Eric Cartman

newacc2015 wrote: »

The US government says its not a tax haven. Its tax friendly like the Netherlands or Switzerland. We arent offering a secret deal. They are using our tax laws to lower their tax bill. An American company tried to do the same thing with a British company last year. In your opinion due to that, is the UK a tax haven too?

Allegen has a proper presence in Ireland. They arent a post box in the IFSC. They have a few major factories here and in a better financial position than Pfizer ie they less geared.

Eh? What more investment can we get? We have a majority of all major technology and IT firms here. We have a relatively large investment banking industry. We have a fair share of factories for a tiny country

We are currently not a tax haven, people seem to think we are though :roll eyes: . I would suggest we actually become a tax haven, even a mild non haven plan of 10% corporation tax & 10% CGT and abolish DIRT . everyone would be jumping to come here.

Zenga

Eric Cartman wrote: »

We are currently not a tax haven, people seem to think we are though :roll eyes: . I would suggest we actually become a tax haven, even a mild non haven plan of 10% corporation tax & 10% CGT and abolish DIRT . everyone would be jumping to come here.

Double Taxation Agreements are known across the world as the smart way to be "tax efficient".

This is just another in a long line of such deals, the idea was a win some lose some, but it is scary how easily massive companies can now move the revenue they earn from country to country "hoaring" their wares for the best deal. If it continues will this not be a race to the tax haven bottom?

To me something needs to be done to address the issue and Im not sure it is a simple case of eliminating DTA's & another problem seems to be that no country wants to be courageous enough to take the first step

Beasty

Zenga wrote: »

Double Taxation Agreements are known across the world as the smart way to be "tax efficient".

I disagree with this. DTA's are aimed at eliminating double taxation. They are here to stay, subject to the new OECD proposals under its Base Erosion and Profit Shifting initiative. The plan is to introduce a "multilateral" agreement which any country can sign up to (all current agreements are bilateral). Such an agreement by its very nature will be relatively restrictive and it remains to be seen whether Ireland will sign up to it. Regardless many countries will not leaving a lot of the current bilateral agreements in place.

Either way this will not overly influence the likes of Pfizer and how they structure themselves. They will be happy with a relatively light touch Irish tax system (internationally at least) and a low domestic corporate tax rate.

melissak

Eric Cartman wrote: »

people complaining that Ireland is a tax haven, Irish politicians rushing to claim we're not a tax haven.

Like other small Island nations, I think its time we became a tax haven. If it brings in investment like this , its a win win for us.

It might make us safer. Rich people, who have power,don't tend to promote wars or political instability where their money lives. I am not of course in favour of the country being sold to big corporations,but it is happening and this would be one happy side effect.

steddyeddy

Geuze wrote: »

Some people wrongly suggested that CT would rise by 620m, but that is wrong, as shown on Seamus Coffey's blog.

Any peer reviewed papers as opposed to a blog?