ubiquitous
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2002 actually. 2001 was the year of the short tax year (5 April - 31 Dec)
Since 2001 the start of the tax year has been 1st January, with the budget in December.
That argument is all well and good but the main companies coming here now for tax reasons are not creating employment. Look at the UK companies moving their headquarters here which will basically be a plaque on the door. I work for a foreign financial institution who came here for the tax reasons and has built up a sizeable operation. They would not pack up their bags and leave if corporation tax went up to 14% just like they didn't leave when it went up to 12.5% from 10%. If multinationals are going to move to Eastern Europe or India, they will more than likely do it for reasons other than tax because it is the other costs of doing business here that is the problem.
I am not saying it is a good idea. Just wondering why it has suddenly become an untouchable tax
So in other words make the poor poorer and the rich richer .
There are very good reasons why it is untouchable. It is widely acknowledged that it contributes massively to employment in the multinationals despite your generalisation to the contrary.
Raising the rate is off the agenda as (1) it would reopen all sorts of issues with the EU who would frankly prefer if our CT rate was 25%-30% (2) it would create the perception that governments are going to gradually increase the rate towards those levels over a period of time, thus defeating its purpose in the first instance.
But you could make the argument about employment creation with regard to other taxes as well but they Government will still look at raising them.
My point remains. Why do we assume that touching the corporation tax rate will lead to every multi-national company packing their bags and leaving the country in a big sulk.
Can you provide a source to support this latter contention?Last weeks decision of Henderson Asset Management and Charter Engineering to move their headquarters here is a perfect example. They are creating zero employment here
Dittoand it damages our reputation.
But you could make the argument about employment creation with regard to other taxes as well but they Government will still look at raising them. I am not talking about putting them up to 20% but why not look at the possibility of a small increase.
My point remains. Why do we assume that touching the corporation tax rate will lead to every multi-national company packing their bags and leaving the country in a big sulk. Why haven't they left already? Estonia is offering a 0% tax rate. As I said before the IFSC has grown since 2005 when the 10% corporation tax rate ended and went up to 12.5%. My own company's assets have gone from €1 billion to €4.5 billion and we have gone from a staff of 5 to a staff of 13.
I would also make the point that Ireland will have to look at it sooner or later because Countries like the UK and the US are getting increasingly annoyed at companies using Ireland as a tax base. It is only a matter of time before the US makes it harder for American companies to use Ireland. Last weeks decision of Henderson Asset Management and Charter Engineering to move their headquarters here is a perfect example. They are creating zero employment here and it damages our reputation.
As a compromise, how about making it that the low tax rates only apply to companies that create a certain number of jobs instead of any company that simply hold their board meetings here.
Again I could be totally wrong but I just wonder why everyone discusses raising every other tax except this one.
What percentage of Estonians speak English? If English was their mother tongue, and with 0% corp tax, then I suspect that every multi-national would leave Ireland. The multi-nationals are only here for the low tax. What else is here for them?My point remains. Why do we assume that touching the corporation tax rate will lead to every multi-national company packing their bags and leaving the country in a big sulk. Why haven't they left already? Estonia is offering a 0% tax rate.
What percentage of Estonians speak English? If English was their mother tongue, and with 0% corp tax, then I suspect that every multi-national would leave Ireland. The multi-nationals are only here for the low tax. What else is here for them?
Okay, they are only here for low tax and English speaking work force.But you are contradicting yourself. According to you they are here for the tax AND the English speaking workforce
Yes indeed. They should cut corporation tax, employer PRSI and VAT. But they usually do the opposite of what they should. When the economy was booming they stoked it further and now that it is fading rapidly they will starve it of oxygen . . do they not realise that their job is to even out the peaks and troughs rather than compound them?The paradox is that tax cuts usually increase tax revenues and tax increases do the opposite.
Yes indeed. They should cut corporation tax, employer PRSI and VAT. But they usually do the opposite of what they should. When the economy was booming they stoked it further and now that it is fading rapidly they will starve it of oxygen . . do they not realise that their job is to even out the peaks and troughs rather than compound them?
Yes indeed. They should cut corporation tax, employer PRSI and VAT. But they usually do the opposite of what they should. When the economy was booming they stoked it further and now that it is fading rapidly they will starve it of oxygen . . do they not realise that their job is to even out the peaks and troughs rather than compound them?
To be fair to the Government it is hard to justify raising taxes when you have a suplus of a few billion and then cut rates when you face a deficit of the same amount so smoothing out peaks and troughs is rather difficult! I take your general point though. Of course so far people have only concentrated on the revenue side of things. I still reckon like any company, there are savings to be made on the spending side for Ireland inc!
What about the stable social situation, eh Reg, they're here for that too...Okay, they are only here for low tax and English speaking work force.
Wouldn't be surprised if CGT on property went back up to 40%. Given the current state of the market it may not help the coffers so much but it might prevent the flood of property for sale turning into a tidal wave.
The CGT hiike to 40 has been talked as a possibility for years and maybe a good thing to swell the coffers quick especially as there will surely be lots of sales with many people seemingly struggling.
Except that CGT hikes reduce CGT receipts as people are incentivised not to sell.
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