Wednesday, March 7, 2018

Tax avoidance royalties make up almost a quarter of Ireland's GDP, says EU

accountability transparency business corruption politics offshore tax evasion money laundering

Multinational companies shifted profits through Ireland – an accounting technique designed to avoid corporation tax - equivalent to almost a quarter of the country’s GDP between 2010 and 2015.

Profits diverted through Ireland far exceeded those diverted through other EU states, according to a report published by the European Commission on Wednesday, which examines tax rules in Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and the Netherlands.

The Commission said that some businesses have exploited loopholes and different tax regulations across member states.

It pledged to fight “aggressive tax planning” that has conferred “unfair competitive advantages”.

In 2016 the EU Commission ruled that Ireland had given the US multinational Apple illegal state aid by allowing it to pay an effective 1 per cent corporation tax.  (more...)

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