Dell pays only 1.5million in tax

GSF

People seem to confuse revenue with profit. You pay corporation tax on profits not revenues.

Revenue $100m
Cost of Sales $90m
Profit $10m
Tax @ 12.5% = $1.25m

How much revenue does Dell actually have in Ireland in terms of sales to end customers in Ireland - I doubt it is significantly above $100m.

The rest is transfer pricing in's and outs. Try charging a higher tax rate on that and it will disappear faster than snow in springtime. Any tax revenue Ireland earns as a result of transfer pricing recharging is a bonus nothing more.

munchkin_utd

theres 2 ways of looking at this

A - its taxes lost to Ireland that dell can be extremely creative and manage to reduce their profits so much thanks to Ireland allowing such creative accounting
B - its taxes lost to Europe in general that Ireland being the weak link in the chain allows multinationals to just make up what taxes they want to pay in Europe (i.e. Ireland)

In general the second point is probably something that Ireland will eventually have to concede on to get agreement from Germany for the bailout, as to be honest the corporation tax rate that everyone focuses on is a complete red herring.
If Dell pay 10% or 40% or 70% on a fraction of what their profit would be calculated to be in a different jurisdiction - the big determining factor in what they pay is what they are allowed to declare as profits over what the actual tax rate on profits is.

bamboozle

Dell employ thousands in Ireland, thousands more are have jobs in the surrounding area to their campus. Dell pay RSI to the govt for their staff, their staff pay taxes, their staff's salaries circulate in their economy.

i'd quite happily see another 100 companies like dell in ireland paying zilch in corporation tax if it mean each employed hundreds of people.

i know a family who run a B&B near Dell, both parents have worked full time in this and 99% of their revenue has come from renting rooms out to Dell staff for the last 15 years. I'm sure there are many stories like this in the areas surrounding large employers.

sparksfly

bamboozle wrote: »

Dell employ thousands in Ireland, thousands more are have jobs in the surrounding area to their campus. Dell pay RSI to the govt for their staff, their staff pay taxes, their staff's salaries circulate in their economy.

i'd quite happily see another 100 companies like dell in ireland paying zilch in corporation tax if it mean each employed hundreds of people.

i know a family who run a B&B near Dell, both parents have worked full time in this and 99% of their revenue has come from renting rooms out to Dell staff for the last 15 years. I'm sure there are many stories like this in the areas surrounding large employers.

100% agree. We would be close to a third world country without them.

Private health, generous pension contribution, free third level programmes for employees.
Huge local authority rates, insurance, massive energy bills, water and waste charges.
Massive use of contractors, hotel and conference facilities and they give huge business to Irish suppliers.

Most also make large donations to charities, sports clubs and community groups.

Mess with them at our peril.

Permabear

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sock puppet

Permabear wrote: »

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A lot of that is due to EDS.