Ireland and the EU Post Brexit

View

sandbelter wrote: »

Because every major study of economic growth to three point to three key thing driving economic growth: Access to markets, low company tax rates and good education.

All landmark economic research (Barro, Sala-i-Martin ect) point out the welfare gained from increased employment outweighs that of corp tax receipts. This may change with AI, but lets park that.

You also need to look through to the holder of these stocks and these are not individuals but small personal holdings. Again the poor pay the tax. the second issue is that encourages the use of debt, China Light and Power purchase of some regional electricity networks in Australia, it was done via a lease out of Hong Kong, interest set at WACC and never makes a profit...worse CLP then goes to the regulators as asks for rate increases because they are "loss making".

So the issue is: what you define as profit is as important at the rate you levy.

For tax accounting, some jurisdictions mitigate their high rates with a narrow profit definition, so effective tax is can be (3-4%) yet published rate is 30%.

I fully agree with the need to tax billionaires more. But a range of options will needed to be used both to tax and prevent evasion. Trickle down doesn't work instead a combination of high personal income taxs, definition of tax residency of assets, definition of corporate structures, business purpose tests, trust taxes aggressive withholding taxes on remittances jurisdictions like Jersey, Dubai, Lichtenstein, etc. Since most billionaires live in the Middle east and China taxes at borders maybe more effective as well.

Low company taxes work, there are more effective ways to tackle wealth imbalances.

BIB - You have essentially made the case for CCCTB there, since it is intended to combat those “narrow definitions” be they those for profit or any other financial term.

sandbelter

View wrote: »

BIB - You have essentially made the case for CCCTB there, since it is intended to combat those “narrow definitions” be they those for profit or any other financial term.

Yeap I realise that, ideally financial accounting standards and tax regs should be in accord globally. My concerns are more related to freedom to set rates and in particular the emerging notion that company tax should be levied at sale, rather than overall earnings......which would effectively shift the taxbase offshore and undermining Ireland's fiscal sovereignty.

It's not the EU the worries me, for the last 10 years of dealing with Chinese tax and compliant Chinese management/judiciary/regulators has left me with deep concerns about the coming "Äsian century", something the EU is vital in mitigating.

eire4

sabat wrote: »

If any French politician starts getting snippy about taxation you need only to say the magic word 'Monaco' and he'll quieten down sharpish.

I had to laugh as I was reading the above post I was thinking exactly the same thing.

otnomart

Coca-Cola reportedly considering building milk processing plant in Cork
https://edairynews.com/en/coca-cola-reportedly-considering-building-milk-processing-plant-in-cork-64436/

4068ac1elhodqr

sandbelter wrote: »

It's not the EU the worries me, for the last 10 years of dealing with Chinese tax and compliant Chinese management/judiciary/regulators has left me with deep concerns about the coming "Äsian century", something the EU is vital in mitigating.

Some projections have the Chinese GDP 'x2' that of either the EU or US by 2060. It's a fair while away but likely not only will the UK rejoin in 2030's (if it ever leaves) an ever-expanding EU.

But there may also need to be an 'USEU Atlantic Union' of sorts, just to compete with the mighty dragon, not to mention India, who won't be far behind.

eire4

Wanderer78 wrote: »

Oh it ll be a long time before this one happens, if at all, but on we go with the continual taxation of labour

How far away is the apple tax case in terms of where they are going to be forced to pay us the back taxes owed that was decided on? Think the last I read on that was money had been ring fenced for it but the case was still on going.

Peregrinus

eire4 wrote: »

How far away is the apple tax case in terms of where they are going to be forced to pay us the back taxes owed that was decided on? Think the last I read on that was money had been ring fenced for it but the case was still on going.

They've already paid. The Irish government has lodged the money in a ring-fenced account and is holding on to it in case the appeal is successful and the money has to be repaid, with interest.

The appeal is expected to take four or five years to conclude. With that amount of money at stake, neither Apple nor the Irish government (both of whom have appealed) are not going to rush it.

eire4

Peregrinus wrote: »

They've already paid. The Irish government has lodged the money in a ring-fenced account and is holding on to it in case the appeal is successful and the money has to be repaid, with interest.

The appeal is expected to take four or five years to conclude. With that amount of money at stake, neither Apple nor the Irish government (both of whom have appealed) are not going to rush it.

ok thanks. Well lets hope the appeal fails albeit in 4-5 years.