Low taxes brought prosperity Republic of Ireland. The global tax deal is now threatens it.
For many years, and lived in the Republic of Ireland due to the low tax rate, which is involved in some of the biggest U.s. companies to set up operations on the beach.
Now, these are the U.S.'s actions on tax evasion and avoidance schemes, threatens to Dublin, as Washington seeks to ensure that international agreements on the establishment of a minimum tax rate for large multinational corporations, and recognize the paylaşdırılmasına the right to tax the profits of that part of the country, whose goods or services are being sold, rather than where they come from.
Multinational companies have come out across the past two decades to attract a corporate tax rate of just 12.5%. The vast majority of the Us digital giants use the land as their European headquarters. Nine of the world's largest pharmaceutical companies with a significant presence in the country produce medicinal products sold in the united states.
The Irish low-style tax rates to attract a new type of the free, and the digital giants, in which you don't need to be close to the consumers to sell them, and each one has its intellectual property registrations in business to make a profit, you might say, all over the place.
With the U.S. leading the charge for a minimum tax rate of 15%, and the corporate income tax, there is a plan to bring new support to the Group of Seven countries meeting in the U.K. this weekend.
The Irish government is concerned that the g-7's plan to modernize the international tax system will leave a massive hole in the budget. It is not attractive for many companies. The decision to locate in the country has changed, and its financial position has changed over the past few decades.
However, there are signs that he is about to agree to a review, is strongly supported by most of his allies, and, ultimately, his most important-in the Us.
"The changes are on the way," said Thomas Byrne, the Irish Minister of State for Europe, said in a television interview on Thursday. "We are committed to working with the OECD, and we're going to see where this leads."
If the minməyəcəkdir carries out the g-7 of the reforms, other, poorer countries will see in Ireland, which is the wealth. The country is the country with tax incentives to attract foreign firms, which brought new technologies and better jobs and the resources needed for significant projects to improve the quality of training.
The g-7's proposal would lead to the Republic of Ireland will lose a significant portion of its income, the taxation of business profits. However, the independent budget watchdog estimated that the loss of profits would be around 3.5 billion euros. The euro, which is equivalent to 4.24 billion.
However, the extent of the economic damage would be even greater if some big American companies have decided to leave the Republic of Ireland. In Ireland, the Financial Advisory Board, which is the equivalent of the Congressional Budget Office, estimated time to care about one-half of the top 10 largest AMERICAN companies would have cost the government € 3 billion in revenues and a loss more than 10 000 employees.
However, Sebastian Barnes, the President of the U.S., said that it was difficult to determine precisely what are the adverse effects of the tax changes, which may be thought to be.
The government will receive about twice as much tax revenue from businesses in the world's wealthiest countries, or about one-fifth of the total by 2020.
They are the tax that the members of the Group of Seven wanted to change. They were designed in the 1920s for the global economy. Not just a small business is often the plants that are operating in another country. Carmakers were among the leading international companies, which are used to build manufacturing plants in countries with many potential customers.
The Republic of Ireland did not attract a lot of attention from international business. This is because the domestic market was too small, and they lack resources such as coal, oil, and iron. It is also geographically marginal to Europe, where transportation costs are high.
However, when the Republic of Ireland's corporate tax rate was already 12.5% in 1999, the number of international companies that do not need the ingredients wasn't enough. So the Republic of Ireland and them is near the customer was essential.
Over the preceding two decades, transnational Companies have increased in size and complexity. The gains are more easily transferred to the sharing of intellectual property rights, which can be moved from one country to another without too much trouble. Moreover, their service can be sold in the country to have a physical presence in the factory. This is accepted in the Republic of Ireland to attract big companies like Facebook, Inc., Google, and Apple, Inc.
But the economists who follow tax evasion, saying that it's low taxes, companies can avoid having to pay taxes on all of the charges. According to him, Thomas, Tersleva of the University of the Coalition, and the Ludwig-Boat, and Gabriel Zuckman, of the University of California, one of the $ 616 billion in profit, which was transferred to low-tax countries by 2015 and $ 100 billion of which was transferred to the Republic of Ireland. What did they do in the main room for the new ones performance, ahead of the Singapore-Singapore, the Netherlands, and the Caribbean tax havens of Switzerland?