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File photo. Masante Patrice

'Ireland is not a tax haven': Department of Finance dismisses 'tax haven' research findings

A study has claimed that Ireland channels the profits of more multinational companies than all the Caribbean islands combined.

THE DEPARTMENT OF Finance has rejected the findings of a study claiming that Ireland is the world’s biggest “tax haven”, saying the researchers didn’t even define what a tax haven is.

Research published earlier this month said that multinational companies shift around 40% of their profits out of their home countries into tax havens in order to shelter their profits.

The study, which was carried out by academics from the University of California, Berkeley and the University of Copenhagen, estimated that foreign companies channelled €90 billion of their corporate profits through Ireland in 2015.

This put it well ahead of all of the Caribbean islands combined.

The paper’s authors, economists Gabriel Zucman, Thomas Torslov and Ludvig Wier, wrote:

By our estimates, Ireland is the number one shifting destination, accounting for more than $100 billion alone.

Singapore, the Netherlands, the Caribbean and Switzerland were the next biggest tax havens according to the research.

The study, which is called The Missing Profits of Nations, notes that foreign corporations have an, extremely high, profitability ratio of 800% in Ireland. It says this contrasts dramatically with all non-haven countries.

The Department of Finance dismissed the study’s findings saying that it fails to provide any definition for a tax haven and merely asserts that Ireland, and other countries, are tax havens without providing any rationale for that assertion.

Ireland is not a tax haven and does not meet any international standards for being so considered.

It added:

Suggestions that Ireland are a tax haven simply because of our longstanding 12.5% corporate tax rate are totally out of line with the agreed global consensus that a low corporate tax rate applied to a wide tax base is good economic policy for attracting investment and supporting economic growth.

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The paper says it used a 1993 list of “havens” drawn up by US tax academics, James Hines and Eric Rice, and added the Netherlands and Belgium.

Finance Minister Paschal Donohoe said that Ireland outperforming the Caribbean islands was explained by the economy attracting jobs and investment across the period when the study took place.

He also said that Ireland has taken steps to change its tax system to meet the requirements of the the Organisation for Economic Co-operation and Development (OECD).

“We have an open economy, which is a core strength of how we create jobs in our country,” he said.

If you look at developments in our corporate tax code over the last few years now we have eliminated stateless companies, we’re phasing out the double Irish and we’ve made many of the changes that are required of us by the OECD.

“The OECD in their latest assessment of our tax code said that we had attained the highest rating possible in terms of transparency. What we have is a competitive tax policy,” the minister said.

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    Mute Philip Kenna
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    Mar 10th 2013, 5:50 PM

    What are these people thinking!

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    Mute Terry Morgan
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    Mar 10th 2013, 5:52 PM

    Profits!

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    Mute Justin Devaney
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    Mar 10th 2013, 6:21 PM

    It’s only a matter of time before I see a cow in a tiny pair of speedos covered in fake tan in a field flexing his muscles.

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    Mute mohamad oconnor
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    Mar 10th 2013, 7:05 PM

    Beef is so last year 2013 it’s all about horse!!

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    Mute richardmccarthy
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    Mar 10th 2013, 11:36 PM

    Hey leave my horse outside

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    Mute Mike Clinton
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    Mar 10th 2013, 5:51 PM

    How many steroids does it take to turn a cow into a horse ?

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    Mute Stephen Church
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    Mar 10th 2013, 5:58 PM

    Ask sarah jessica parkers plastic surgeon ?

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    Mute Mike Clinton
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    Mar 10th 2013, 6:01 PM

    @ Stephen…
    Oh dear Jases, I havn’t laughed that much in ages . 10/10

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    Mute damien foley
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    Mar 10th 2013, 6:04 PM

    how many does it take to turn u into ass

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    Mute Mike Clinton
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    Mar 10th 2013, 6:05 PM

    Or for you to kiss mine !!!

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    Mute Griffosaurus
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    Mar 10th 2013, 6:16 PM

    JasuZ damo who pissed in ur cornflakes…..

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    Mute Little Jim
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    Mar 10th 2013, 9:31 PM

    Mad for ass that lad, mad for it..

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    Mute Dave Murray
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    Mar 10th 2013, 6:40 PM

    This is arguably worse than the horsemeat scandal.
    Irish beef is such a fantastic product, I’m surprised the IFA even let it get this far.
    I mean, is this not Angel Dust by a different name?

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    Mute dermot ryan
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    Mar 11th 2013, 12:50 AM

    The I.F.A. have a turnover of 44million and a retired cop on his pension as its leader …what makes you think that the I.F.A. care about farmers, farming or indeed the consumer …………. think Jack O’Connor and you have the I.F.A. …in my opinion ..
    It’s as simple as this folks this is being done to open up the american beef producers to the european market and to hell with the consequences , the same thing happened when the original CAP was introduced but in that case it was the brazilian beef market and the result ? ………. rainforest destruction and no tarriffs put on Brazil ! …….It’s only a matter of time before drones fly over Ireland !

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    Mute Barry McSweeney
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    Mar 10th 2013, 9:57 PM

    It is worse than the original article describes.
    “At the same time as it scrapped illegal steroid use from cross compliance, the Agriculture Committee of the European Parliament also dropped water quality from the same system of checks and balances.”

    So while “feck it up” Phil is making rural dwellers pay for their septic thanks, his European colleagues want to lower standards. Can I have my money back, Phil?

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    Mute Stephen murphy
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    Mar 10th 2013, 7:07 PM

    Proof of the lobby groups power in Europe, We’re a member of a Cartel!

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    Mute Mary Kavanagh
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    Mar 10th 2013, 6:55 PM

    Short term greed, long term loss and when it all goes belly-up who’ll pay the tab? Why, the tax-payer, of course.

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    Mute Eoin Darcy
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    Mar 10th 2013, 6:56 PM

    Why are we in the eu again?

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    Mute Begrudgy
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    Mar 10th 2013, 9:57 PM

    Grants for farmers.

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    Mute Harvey Lumpy
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    Mar 10th 2013, 8:38 PM

    So they are saying to the farmers go ahead and break the law to make higher profits and we’ll continue to pay you to do it. Muppets. It would be very shortsighted of farmers to do this.

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    Mute Barry McSweeney
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    Mar 10th 2013, 7:58 PM

    No-one knows what happens in the European Parliament which is why these bastards can get away with murder.
    What have the Eurofanatics eg Brigid Laffan to say about this?

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    Mute chair man
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    Mar 10th 2013, 6:33 PM

    I see that they haven’t learned from the horse/beef scandal ….

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    Mute Justin Devaney
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    Mar 10th 2013, 6:41 PM

    I wonder will Ikea put steroids in their shit cakes?

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    Mute Barry McSweeney
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    Mar 10th 2013, 8:42 PM

    Where were our farming organisations in all this?
    Still bullshitting us that Irish meat can be trusted from “farm to fork”? While they picket Coveney’s office for more money.

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    Mute Michael Roughan
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    Mar 10th 2013, 10:56 PM

    Eat any meat at your peril, they are all pumped with hormones, antibiotics , growth promoters, animal vaccination , etc. they you kill them when they are in a slaughter house, pumping with animal adrenaline on top of all the chemicals. No wonder people’s body chemistry has changed for the worse

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    Mute Michael Gorman
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    Mar 10th 2013, 10:02 PM

    That it I’m finished with Irish beef going to Tesco’s and get English beef at least it wont have that shit in it.

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    Mute Ciaran MacAoidh
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    Mar 10th 2013, 11:06 PM

    This isn’t about Ireland, it’s about the EU and England is in the EU too.

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    Mute Michael Gorman
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    Mar 10th 2013, 9:59 PM

    That finish’s me with Irish beef only English beef from Tesco’s from now on it cant be any worse than this irish shit.

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