good documentary here on how corporations pay little or no taxes on their profits
The Tax Free Tour (VPRO, Marije Meerman) - YouTube
Double Irish arrangement - Wikipedia, the free encyclopedia
i know we're all used to the we need to protect our low corporation tax rate because it brings companies in and those companies employ people. in reality we've made ourselves part of global tax avoidance strategies, companies dont need to employ anyone to take advantage of ireland as a tax haven, and the exchequer makes about eur4bn in corporation tax a year (about 10% of total tax receipts).
So these companies arent paying 12.5% corporation tax in ireland, we're neither the first nor last step in corporate tax avoidance. Profits move from where they are filtered through fictitious cost structures which brings the money through ireland briefly before it is further filtered further fictitious cost structures before finally finishing in some jurisdiction with 0% tax such as virgin islands.
The evidence is that there is are estimated trillions in multinational cash flows engaged in tax avoidance schemes. How much of it comes through ireland I dont know, but it's clear that the amount is much more than the eur32bn profits which would generate eur4bn of corporation tax.
So why do people defend our participation in this global tax avoidance ? Why dont we make these companies pay a fair contribution to society ?