In short; yes.Growth figures are also skewed by these businesses, so are we back to the mid 2000's again and running our economy on foundations of sand?
In short; yes.
It seems so blatantly obvious. Why is there no outrage from politicians or the commentariat?
Hi 24601
I have raised this on many occasions. That it's crazy that with artificially high CT returns and very low interest rates, we are still borrowing to run the country.
A budget which Charlie McCreevy or Brian Cowen would be proud of…
In light of the fact that the growth in corporation tax receipts was driven largely by about ten giant multinationals it would seem that the planned increases in current public expenditure are underwritten by a very small number of counterparties who could up and leave at any minute or suffer a downturn in performance. The projected CT take for 2017 was €7.65bn but the actual amount taken in ended up being €8.2bn.
there are at least two reasons to think that the multinationals will not all up and leave.
Agree that they won't all up and leave at the same time, unless some tax change forces them to do so.
But, the loss of any one of them would be a significant loss to the Exchequer.
We got €8 billion in Corporation Tax last year. How much of this came from the top 10 companies?
Brendan
During the CT we were reliant on one industry.
and running our economy on foundations of sand?
Yes and even that one industry was operating on borrowed money. Construction had reached a point where projects were being financed on the basis that prices would rise during the construction.
There is no such risk in the present situation regarding multinationals.
You should quietly let him know that most of them are built on rock.A friend of mine when told that his argument wouldn't last as it was built on sand, replied without hesitation, "Yes, like the Pyramids."
Agreed, and much of that tax competition is outside our control.It's concentration risk though, and I'd argue that the risk derives from tax competition rather than the performance of any one or small number of the top ten payers, but in any case there's definitely an over-exposure.
The Multinationals might operate in many different sectors but they are all here for one reason; taxes.
Take away the tax breaks and would any of the other factors attract them here? Given that we are a small island with a limited pool of labour (the hine-Ruhr metropolitan area has a population of 11 million people) do we stand out from the UK, Nordic countries, Germany etc on things like a stable political environment, good labour relations, good legal enforcement of contracts, high standard of living and a well educated workforce?Personally I think the reasons are more complex and deep than either, (tells you all about me) and involve a stable political environment, good labour relations, good legal enforcement of contracts, high standard of living, well educated workforce and of course tax advantages.
The Multinationals might operate in many different sectors but they are all here for one reason; taxes.
That is unusual. No transfer pricing or anything else in the background?Granted it might be a rare case, but the US company I work for and who employ more than 1,000 people here carry out no sales in Ireland or across Europe. So there is no corporate tax benefit at play here.
That is unusual. No transfer pricing or anything else in the background?
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