4 ms·

To be replaced by the Irish tax department making direct deals that are essentially the same. But ONLY for specific companies (principle: big multinationals don

by spwa4 6mo ago

To be replaced by the Irish tax department making direct deals that are essentially the same. But ONLY for specific companies (principle: big multinationals don't pay tax at all, local companies get big tax raises. Irish companies are dying, multinationals are moving to Ireland) https://taxsummaries.pwc.com/ireland/corporate/tax-credits-and-incentives https://taxsummaries.pwc.com/ireland/corporate/tax-credits-a... In case anyone wonders: this means the FANG companies don't pay tax in Ireland if they hire enough people in Ireland, which has famously high income tax. It is, in other words, effectively a massive tax increase on the employees while actually reducing total tax income in the EU compared to the "double dutch sandwich". Note that Ireland signed at least 2 international treaties that they weren't going to do this (OECD minimum tax treaty, EU tax treaty). Of course, there are no consequences to this. The response to is that EU is exploring company-tax-per-transaction which is so incredibly bad in the massive administrative burden it will generate. It's not final, but it will mean that for every transaction done companies will have to keep (PER transaction) pieces (plural) of evidence for what country they happened in. Every single transaction. https://joint-research-centre.ec.europa.eu/projects-and-activities/fiscal-policy-analysis/corporate-taxation_en https://joint-research-centre.ec.europa.eu/projects-and-acti...

nickff 6mo ago
Lots of governments give tax exemptions to selected industries (film comes to mind) or even companies (Foxconn/TSMC); I don’t support this behavior, but I don’t see what makes Ireland special in this regard.
- xg15 6mo ago
  Well, that was the original question of the thread: > How come tax loopholes aren't as scrutinized?
  - spwa4 6mo ago
    And the answer is simple: because countries sabotage each other's tax income when they can, even within unions (like US or EU, hell I'm told it even exists in Russia). And with mobile capital, like multinationals, they can. Ireland violated international treaties, multiple, to do this. Oh and they call it a huge success (despite that this will obviously suddenly crash and burn when other countries either block it or give better deals). Oh and it cements the power of American multinationals over local EU companies, when the Irish government publicly and loudly claims they intend the opposite, and for reasons I don't understand, people seem to actually believe them.

by spwa4 6mo ago

nickff 6mo ago

Lots of governments give tax exemptions to selected industries (film comes to mind) or even companies (Foxconn/TSMC); I don’t support this behavior, but I don’t see what makes Ireland special in this regard.

xg15 6mo ago
Well, that was the original question of the thread: > How come tax loopholes aren't as scrutinized?
- spwa4 6mo ago
  And the answer is simple: because countries sabotage each other's tax income when they can, even within unions (like US or EU, hell I'm told it even exists in Russia). And with mobile capital, like multinationals, they can. Ireland violated international treaties, multiple, to do this. Oh and they call it a huge success (despite that this will obviously suddenly crash and burn when other countries either block it or give better deals). Oh and it cements the power of American multinationals over local EU companies, when the Irish government publicly and loudly claims they intend the opposite, and for reasons I don't understand, people seem to actually believe them.