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Thread: Hostility to US multinationals' tax avoidance in UK,France and Italy will drive investment to Ireland and maybe solve all our economic problems

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    Default Hostility to US multinationals' tax avoidance in UK,France and Italy will drive investment to Ireland and maybe solve all our economic problems

    The UK mentality of "It's not fair" is pressuring Starbucks,Google and Facebook to pay more UK corporate tax. The French under idiot President Hollande have begun tax investigations of multinationals, with arbitrary,potentially huge penalties on those companies. The Italians are treating normal technical tax compliance disputes as criminal matters,given the loose cannon laws available to prosecutors for crushing Mafia activities,not to mention politically motivated attacks on lecherous Berlusconi. This tax crusade pleases the publics in all three countries as shown in boycotts of UK Starbucks.But the UK government will likely ease up on multinationals soon on which it depends for huge foreign direct investment,FDI.

    The reality is that EU countries won't surrender enough sovereignty over taxes to make multinationals pay a reasonably high tax rate. This allows countries like Ireland and Eastern European countries with very low tax rates to attract disproportionately large FDI. After recent stunts by tax authorities in France and Italy,tax planners will be advising multinationals to switch a lot more FDI to Ireland which is considered an extremely stable FDI tax jurisdiction.Ever since the 1950s depression that wrecked the economy and caused mass emigration,the Irish shrewdly realised that multinational tax breaks attract huge amounts of job creating foreign investment. Despite all the political changes in the 50 years since then,that attitude hasn't changed,even among many left wing politicians.

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    Politics.ie Member TheWexfordInn's Avatar
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    Quote Originally Posted by patslatt View Post
    .. to Ireland which is considered an extremely stable FDI tax jurisdiction.
    With Ireland now beholding to foreign powers for its economic survival I wouldn't count on this stability remaining in light of the ever more vocal objections against the current tax regime coming from those foreign powers holding the purse strings.

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    The fact is the UK,Italy and France have much larger populations and the retail businesses in particular need to keep these consumers onside , therefore they will give in to extra tax payments and look to make up the profit shortfall elsewhere. Personally I think it's great that in the UK the campaign to purchase at companies who pay full Corp tax is having an effect, puts the Tory politicians in an awkward spot too.

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    Politics.ie Member making waves's Avatar
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    Wait a minute - while I - ROTFLMFAO
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    Politics.ie Member livingstone's Avatar
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    Surely the fact that starbucks made a voluntary payment demonstrates that they need the UK market and will do what's necessary to keep it.

    The problem is that this isn't just about where companies locate their HQs, it's about where they operate - and no retail company is going to foresake the revenue of the UK be it in coffee sales, book sales or advertising sales.

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    Politics.ie Member Clanrickard's Avatar
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    Quote Originally Posted by making waves View Post
    Wait a minute - while I - ROTFLMFAO
    If I was thick enough to be a socialist I would hold my whist.

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    Politics.ie Member A view from England's Avatar
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    What the UK is asking for is for these companies to pay a fair rate of tax on the profits made in the UK and not undertake to avoid these taxes by availing of fiddles such as the Double Irish. These companies are not going to stop trading in the UK because the profits they make are huge. As far as Ireland is concerned it should be looking over it's shoulder because it may be the case soon that tax fiddle schemes such as the Double Irish are outlawed in the EU and instead of FDI flocking to Ireland it may go the other way. The UK, Germans and French are all into this.
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    Politics.ie Member making waves's Avatar
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    Quote Originally Posted by Clanrickard View Post
    If I was thick enough to be a socialist I would hold my whist.
    If I was stupid enough to cheerlead for patslatt I would bury my head in the sand so that no one would notice how stupid I was.

    Here - specially for you and pat -

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    Politics.ie Member Ulster-Lad's Avatar
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    Quote Originally Posted by A view from England View Post
    What the UK is asking for is for these companies to pay a fair rate of tax on the profits made in the UK and not undertake to avoid these taxes by availing of fiddles such as the Double Irish. These companies are not going to stop trading in the UK because the profits they make are huge. As far as Ireland is concerned it should be looking over it's shoulder because it may be the case soon that tax fiddle schemes such as the Double Irish are outlawed in the EU and instead of FDI flocking to Ireland it may go the other way. The UK, Germans and French are all into this.
    GOOGLE Ireland paid a puny 0.14 per cent tax on sales of over €47bn in seven years, the Sunday Independent has found.

    "Ireland has the laxest transfer pricing rules of anywhere in Europe because of the objective of employment there," said Richard Murphy of Tax Research UK. "So it can't turn around and say 'you're not paying enough tax.'
    Google pays just 0.14% tax in seven years - Irish, Business - Independent.ie

    Good article on it here.
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    Quote Originally Posted by Ulster-Lad View Post
    I presume thats the effective rate, so we are getting .14% on Sales that do not happen here.

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