“The end of the notorious corporate tax loophole known as the ‘Double Irish’ will not deter U.S. technology giants such as Google and Apple from further investment in the country, Ireland’s Prime Minister, Enda Kenny, told CNBC,” Jenny Cosgrave and Seema Mody report for CNBC.
“The Taoiseach said the end of the tax strategy would not hinder the very ‘congested investment line’ into the country and the closing of the loophole marks a new period of ‘certainty and clarity’ for foreign direct investors,” Cosgrave and Mody report. “‘I think Apple are here for the long term – many of the others are intent on expanding and not contracting. That’s because of the range of technology, our track record and essentially our talent pool which is quite extraordinary given the flexibility of our education system,’ he told CNBC, speaking from Europe’s largest annual start-up and technology event, the Web Summit.”
“Ireland is set to close the “double Irish” loophole — which allows companies to channel royalty payments for intellectual property from one Irish subsidiary company to another that is based in a tax haven — from the beginning of next year, following pressure from the European Union,” Cosgrave and Mody report. “Existing companies will have a transition period until 2020 and Kenny said the development of an information “patent box” or corporate tax subsidy arrangement is in the pipeline. ‘The development of our our information patent box will make Ireland really a global hub for innovation an entrepreneurship,’ Kenny said.”
Read more, and watch the video, in the full article here.
“Ireland’s Prime Minister: Apple has nothing to fear from end of ‘Double Irish’ tax avoidance strategy”
No, but Ireland does.
I love the comments from Ireland’s Prime Minister, Enda Kenny who speaks about Ireland: “That’s because of the range of technology, our track record and essentially our talent pool which is quite extraordinary given the flexibility of our education system,” and moreso “Ireland is not afraid, we are pioneers again in a leading position”
Ah a civilized country that is not afraid is like a breath of fresh air. Way to go Ireland.
Ever heard of spin?? The Republic of Ireland was devastated by the great recession: in March 2008, Ireland had the highest level of household debt relative to disposable income in the developed world at 190%. After years of pain and massive numbers of personal bankruptcies, it is starting to very slowly grow again: in May 2013 the European Commission’s economic forecast for Ireland predicted its growth rates would return to a positive 1.1% in 2013 and 2.2% in 2014. Unemployment is still around 12%, down from a high of 15%. Ireland managed this recovery by a combination of increasing taxes (in particular, reintroducing property taxes and introducing a water charge) and drastic cuts to social services.
RoI simply cannot afford to lose its hi-tech patrons. If it does, its fragile recovery will tank.
joebloggs, thank you for your thoughtful post.
Yes, I’ve heard of spin and hey this is the Ireland’s Prime Minister, Enda Kenny, and a politician without spin is a rare thing indeed so the whole comment might be spin.
You add your insight, very valuable insight if I may add, and that to me demonstrates the importance of these sorts of forums, sharing of information.
You bring forth some very interesting numbers that add to the ones I know about whisky, their accents, the Irish potato famine. Inadvertently you post made me think of an Irish movie that I had not seen for a long time. Like your post it has added a new insight so I’d like to share it with you.
It’s called “The Brylcreem Boys” and it’s an Irish war movie. Now at the time of viewing it I had no idea, no clue that Ireland was, like Switzerland a neutral country and that they interned both sides of the conflict.
All that being said, tossing the ““Ireland is not afraid” into a further spin, results from my perspective, “We are not afraid” and that’s a pretty good feeling.
Hi-tech patrons certainly benefit certain countries. I know China and India experience similar benefits, no doubt there are more.
I think what also pleases me with this situation is the historical aspects of Apple. This isn’t a “oh wow tax loophole let’s go” situation for Apple, they have been there since…. it’s been an actual long term positive international business relationship. Here’s a little excerpt of something I found on line again, adding to the ideas:
“December 23, 1980 and thousands of Irish people were facing the prospect of no electricity on Christmas Day. The basics of modern life – electricity, telephones, indoor plumbing – were still relatively new in Ireland then. Anyone describing the modern, telecommunications-dominated world of today would have sounded like a science-fiction writer, not a businessman about to open a new factory. Yet, Steve Jobs was in Ireland talking about the future.”
Yes, it may be fragile, but there is history building here, and one thing the Irish do have is a flamboyant history.
Thanks again, good day to you.
Road Warrior, youve been at the bottle again havent you.
The simple truth is that Ireland have had a low tax regime in order to get inward investment and like Luxembourg/ belgium and others have used the crap EU tax laws that allow profits made elsewhere in Europe to be declared and taxed in the RoI . This, far from being some misty eyed safe haven for technology or entrepreneurship is a tax haven pure and simple. Now the EU is finally trying to get some sort of level playing field in operation ( because everyone is hard up – unlike the previous era of cheap credit) they are busy trying to create another loophole that will entice companies to stay
Max, Max Max, of course I haven’t been at the bottle, but rest assured I fully understand the need you have to toss something out like that.
It does not distract from your spot on sentiments of the rest of the post. I simply don’t think that Apple began interacting in Ireland simply because it was a tax haven.
Back to my original point I was simply pointing out the value of being fearless. It has many benefits.
“December 23, 1980 … … The basics of modern life – electricity, telephones, indoor plumbing – were still relatively new in Ireland then.”
It’s pretty obvious that if you believe that, you didn’t visit Ireland at that time and have most likely never have visited Ireland.
There might possibly have been a small number of very isolated dwellings where that were true in 1980, just as it would have been true for parts of the US at that time too. For most of rural Ireland, electricity, indoor plumbing and telephones have been taken for granted for as long as people can remember. Telephones in the home were a somewhat later arrival as people initially tended to depend on public telephone boxes, but again, that was true in many other countries too.