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Most of those loopholes have now been closed, and the Irish corporate tax take from global MNCs has been soaring. It is this tax take the US is very keen to claw back for its own coffers, even though the profits have been generated on sales throughout the world. Without some form of digital sales tax, those countries in which the sales/profits have actually been generated will continue to lose out - hence the US's very firm opposition to digital sales taxes which it sees as primarily directed at its own global behemoths and reducing their potential taxable profitability in the US.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Sep 9th, 2021 at 08:33:08 AM EST
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Most of those loopholes have now been closed

What information led you to that conclusion?

by Cat on Thu Sep 9th, 2021 at 03:45:54 PM EST
[ Parent ]
The Double Irish Base Erosian and Profit shifting (BEPS) tax avoidance tool was closed to new entrants from January 2015, with closure to existing users by 2020. Some companies have switched to using Single Malt, Capital Allowances for Intangible Assets (CAIA) and Knowledge Development Box (KDB) tools instead, but the last named is compliant with OECD guidelines.

Various tax experts have estimated the effective rate of Irish corporation tax to be anything from 2.2 to 14.4% depending on the methodology used.

11.1% Prof. Frank Barry Trinity College Dublin (using Devereaux methodology)
14.4% Mr. Gary Tobin Department of Finance (using European Commission/ZEW data)
12.5% Mr. Eamonn O'Dea Revenue Commissioners (using Irish Revenue Statistical Data)
12.4% Mr. Conor O'Brien KPMG (Ireland) (using Irish Revenue Statistical Data)
2.2% to 3.8% Prof. Jim Stewart Trinity College Dublin (using U.S. BEA Data)

Changes to UK and US tax laws introduced by the Obama and Trump administrations have stopped and in many cases reversed the practice of Tax Inversions which enabled US corporations to benefit from lower Irish Corporate tax rates.

The USA is the world's largest beneficiary of tax havens, which it has been so hostile to OECD attempts to curb Irish BEPS rules.

As a result of all these changes, the level of corporation tax collected in Ireland has been booming, increasing to €11.8 Billion last year, a 250% increase on 2014, and now represents 20% of all taxes collected in the state - up from an average of 12% a decade ago.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Sep 9th, 2021 at 08:24:08 PM EST
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