Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
MICHAEL NOONAN has said a United States Senate report into Ireland’s corporate tax – and how the Irish taxation system is used by companies like Apple – is “misleading”.
The finance minister says claims that Ireland has an effective 2 per cent rate of tax for Apple is based on a flawed premise, and again insisted that Ireland does not negotiate with individual companies to decide how much tax they should pay.
Noonan told the Dáil this evening that the ’2 per cent’ rate was calculated by taking Apple’s Irish tax bill as a percentage of its total global profits – and therefore wrongly claimed that Ireland could tax all of Apple’s profits worldwide.
“Companies that are not tax resident in Ireland are no more chargeable… than in the United States,” Noonan said.
“It is clearly wrong and misleading to attribute this tax of tax to Ireland.”
The minister told Labour backbenchers Ann Phelan and Robert Dowds that tax avoidance by international companies was a concern, however, and that governments around the world were “now taking coordinated actions to ensure that corporations pay their fair share of tax”.
Dowds called on Taoiseach Enda Kenny, who will be attending next month’s G8 summit in Fermanagh as Ireland holds the EU Presidency, to ensure that an international campaign against tax avoidance was discussed at the summit.
To embed this post, copy the code below on your site
It would be suicide to higher the corporate tax rate on this small island.
Nobody is talking about raising it, I think what is being suggested is that we properly enforce the one we have.
Personally, I’d raise it. But for a start let’s actually make then pay the measly 12.5%.
We do properly enforce the one we have.
Do you really know what you are talking about?
Do some research Frank http://www.rte.ie/news/business/2013/0521/451564-apple-tax-arrangements/
Perhaps and more than likely that USa will take that decision out of our hands – Irish hand. It is their own Tax Code . Google and these mutinationals are American always were and always will be and have no objection to that at all what I do object to is the lack of faith we have in ourselves and the way we manage and conduct including the people we elect on trust to public office and the time spent with our money on personal affairs. while central banks telling nation that banks are around 20 billion short of being able to deal with mortgage arrears . Who pay them banks then – ? The government biggest sin was refusing or being unable to be honest and open with the nation about the costs of the banks on us . M Noonan that banks need to increase rate for TAXPAYER – when he signed a deal with EU pledging 24 billion of money borrowed by state paid by taxpayers an then they tell dail that none of its business. Didn’t doesn’t seem to bother TDs that we elect them and trust them with overseeing how Govt uses the public funds / What a let down.
Well said Keith.
Now I know you don’t know what your talking about.
“AOI accounts for almost a third of Apple’s total profits.
The second company, ASI, does make an Irish tax return, but in 2011 paid corporation tax of just $10m on profits of over $22bn – an effective tax rate of 0.05%.”
Your maths obviously isn’t too good Frank, tell me how the above filed return yielded 12.5%?
So Keith do you thing Apples profits based on sales in Ireland were 22bn? FactualFranks post is the best overall summary of what is happening. Until you have Apples Corporation Tax calculation, based on their actual return, in front of you then it is all idle speculation. I can guarantee you that no US or German government minster has this information. If they had they wouldn’t make such ill informed comments. The US Senator should focus more on why the US hasn’t signed up to international money laundering regulations and that NY State is where a very high % of the money laundering takes place due to its favourable laws.
I don’t think they make €22bn in Ireland, but they registered two companies in Ireland for the purposes of funnelling all their European profit through them, why can’t we tax it?
Stop now, you’re embarrassing yourself.
And this government are experts on misleading people, tell me noonan did ye get pat rabbite to watch the senate hearings since he admitted the government lied to get into power, talk about stupidity lads come on!
Pot calling kettle black!?!?
Think back to your school days. Think of the stupidest guy in your class. The class clown. He is in the majority in the US House of Representatives… Enough said.
I wouldn’t say no to 2% of apples worldwide profits! ;)
It’s not misleading. Ireland is a tax haven.
A communist utopia is what you’d prefer Petr.
Oh noonan showing he got cajones,
Pity he didn’t do it against the other vultures in country.
Big accountantcy firms and European banks to name a few…
Translation: I don’t have an intelligent, informed point to make so I’ll post a smart comment instead.
It’s hardly a tax haven. They have a lower C.T than most countries but every other country has a choice to lower C.T if they want.
Do your homework, Matt. Corporations elsewhere are laundering money through Ireland.
Steady on there…now you’re confusing tax avoidance with money laundering. One is criminal, the other is not.
The impact is the same. Poor people get hammered with stealth taxes and cuts; rich people roar laughing over a bottle of the finest.
Whose side are you on?
Petr even when you try the popular angle you are wrong.
Without those “evil corporations” we would be un deeper crap than we are. They employ hundreds of thousands of people both directly and indirectly. Those companies are here for the favourable and legal tax rate.
“misleading” eh?
Noonan is a bondholder. Stop misleading us and release the names who we are given all our money away to.
Irish people are so stupid and naive. Ireland has a 12.5% corporation tax on profits only. Companies like Google and Apple to avail of this will cut down their profits further through setting up headquarters in even lower taxed countries mostly Holland where they can pay as low as 1.9%. Through these headquarters they then charge subsidaries licensing costs, interest on cross organisational loans and charging higher transfer prices between both companies. As they reduce their accountable profits they reduce their tax burden, its not illegal its just frowned upon. The government cannot do a thing about it. They pay 2% of their overall profits due to them paying 12.5% on their reduced profits. Idiots.
@FACTUAL FRANK
all transfers between companies within the same group of companies if there is any profit has to be canceled when consolidating accounts of the group , you cannot sell to yourself , works the same for companies unless items are sold outside the group within the accounting period then the profit can be realized legally
Sure they have to try and save some face before the shit hits the fan and the real truth comes out. Wouldn’t it be ironic to see the fools fall from power because a company is doing to them exactly what they’re doing to the people?
American and German politicians have politicians like Michael Noonan for breakfast…….
Does Noonan have shares in apple too?
Now Mr. Noonan. .. pick up the phone and tell that to the vote seeking clowns on capital Hill
@ Marc
Kenny and Noonan are afraid to take a proper swipe at John McCain and the US Senate committee. They can only attack easy targets. I’m enjoying how cowardly they are lately…
What capital hll does for the US state is NONE OF KENNY OR NOONAN BUSINESS. oUT AFFAIRS IS THERE BUSINESS.
As to our business – we look very bad as a nation on the international stage – and not just as to tax laws.
But closer to home – and taxpayers pockets = an agreement the Government made with the EU/IMF that was none of Dail Business (translated none of our business as TDs answerable only on door steps at election time)
*Pledging 24 billion of the loan borrowed in taxpayer names to named banks and
* merge INBS and Anglo Irish Banks
The Government then unilaterally decided to renege and had TDs VOTE legislation to liquidate the banks they agreed to merge and incur the wrath of ECB on us. is this not sending out message to the international Community of a county that will enter into an agreement ( a loan agreement) charging public funds and then unilaterally breach and change the terms – I wonder did even one TD ever read that doc or were they too busy arguing toos of fines and licence fines.
For not one either has challenged the authority of the Government to purport to bind the people to such an agreement to merge these banks and charge the public funds with 24 Billkion for more.
@Marc
Vlol … indeed
Michael Noonan couldn’t explain how 2% was reached with a cue card which reads “1% + 1% = _%”
For sure there is creative accounting going on with these companys, but the only thing wrong with that is that the rest of us (bar the self employed)dont have the same options,governments can be complete wasters with tax payers money,if the US didnt have so much money at its desposal its doubtfull they would have got involved in so many wars, Irish politicians under Bertie Aherne who were and still are some of the highest paid in Europe, thought that throwing taxpayers money at every problem was the answer,but we now know that it just creates massive problems for the future,people have every right to keep as much of their earned income in their pockets and out of the hands of politicians.
What’s is needed is full transparency and laws that are enforced, as soon as there broken.
Its only a matter of time the swiss banks were hiding money from US authorities when UBS were told they would no longer be able to do business in the USA they would lose 80% of their business they complied.When the Irish Government is told the same they too will click their heels.Remember the fighting Irish is an American term nothing to do with Ireland but with the people who left.
have your say