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Garlic man doesn't pay tax, gets jail, Google man doesn't pay tax, gets taken to lunch


parentheses

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Trenchant comments by Trinity professor Jim Stewart. Basically he says huge MNCs such as Google are able to negotiate tax arrangements which suit them but Irish small businesses and individuals have no such clout.

Ireland operates two very different tax systems, one for corporate multinationals and a second for smaller companies and individuals, according to Trinity finance professor, Jim Stewart.
Stewart gives this example of Google having the tax regime altered in its favour

It has been reported that last year Revenue Commissioner did tailor the tax regime to Google’s advantage. Revenue agreed to let Google make billions of dollars in royalty payments directly to a Bermuda subsidiary, helping to cut the company’s tax bill by at least $2bn a year, according to US and overseas securities filings.
Dual tax system benefits the big players | Irish Examiner
 

Carlos Danger

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One man's evasion, is another man's avoidance.
There is a difference between breaking the law for gain, and using it for gain.
 

eoghanacht

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Garlic man committed crime Google erm didn't.

Slight difference
 

RobertW

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Garlic man committed crime Google erm didn't.

Slight difference
Google man has a word with the Minister for Finance as the Finance Act is constructed.

Garlic man does not as garlic man is a pleb.
 

commonman

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Right or wrong any company that comes to this country with jobs the government will bend the rules for them. they always did down the years.
 

Analyzer

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Watcher2

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I hadn't realized that, what is the correct term for the double Irish, if not "avoidance"?
A nod and a wink to the foreigner with money. The politicians see it as cute whoorism to take business from the other European countries.
 

Carlos Danger

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A nod and a wink to the foreigner with money. The politicians see it as cute whoorism to take business from the other European countries.
So the correct term is.....?
 

ibis

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Trenchant comments by Trinity professor Jim Stewart. Basically he says huge MNCs such as Google are able to negotiate tax arrangements which suit them but Irish small businesses and individuals have no such clout.



Stewart gives this example of Google having the tax regime altered in its favour



Dual tax system benefits the big players | Irish Examiner
It's not a good example, because the effect of the change is not to reduce Google's tax burden, but the administrative burden on the Revenue. Google saves itself €2 billion by routing payments to Bermuda either way - the change does not affect the amount Google Saves or pays in tax. Allowing Google to route the payments differently means that the Revenue don't charge a withholding tax of 20% that they would also have refunded in full. The's no point to that withholding tax, and it just makes work to charge it and refund it.

The article perhaps deliberately confuses the issue with its phrasing, but the net change between the old position and the new one is zero, except for the saving of Revenue time. Again, the article looks at Google's paid tax and says the change apparently doesn't save anything, but the change wouldn't be apparent in the tax paid, but in administrative costs saved.

Articles like this are misleading, and add nothing to public understanding of public affairs.
 

Watcher2

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It's not a good example, because the effect of the change is not to reduce Google's tax burden, but the administrative burden on the Revenue. Google saves itself €2 billion by routing payments to Bermuda either way - the change does not affect the amount Google Saves or pays in tax. Allowing Google to route the payments differently means that the Revenue don't charge a withholding tax of 20% that they would also have refunded in full. The's no point to that withholding tax, and it just makes work to charge it and refund it.

The article perhaps deliberately confuses the issue with its phrasing, but the net change between the old position and the new one is zero, except for the saving of Revenue time. Again, the article looks at Google's paid tax and says the change apparently doesn't save anything, but the change wouldn't be apparent in the tax paid, but in administrative costs saved.

Articles like this are misleading, and add nothing to public understanding of public affairs.
It saved google the Dutch tax it was paying on the profits of the Dutch company sandwiched between the Irish resident company and the Irish non resident managed and controlled from Bermuda.

If the old arrangement was such a burden on the revenue commissioners, it would have been changed long ago.
 

Watcher2

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A number of my posts here have been deleted. Seems as though I am getting too close to the bone.
 

Carlos Danger

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A number of my posts here have been deleted. Seems as though I am getting too close to the bone.
Mine too. I've asked for an explanation, but nothing yet.
 

macs magic

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The answer is simple.Ireland is a tax haven within the EU and it was called that on Newsnight during the week on BBC2
 

Watcher2

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The answer is simple.Ireland is a tax haven within the EU and it was called that on Newsnight during the week on BBC2
Many places refer to Ireland as a tax haven, even the Obama administration group us with Bermuda and Cayman Islands.
 

CarnivalOfAction

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Google man has a word with the Minister for Finance as the Finance Act is constructed.

Garlic man does not as garlic man is a pleb.
Same old, same old; FG/LP bullies hit the wee guy; grovel to to the big guy, just as the Ffailures did. Compare & contrast:

'Idiotic' cutbacks force family to place disabled daughter in care - Independent.ie

"A HEARTBROKEN family has been forced to place their severely disabled adult daughter in residential care because of cutbacks to her special education transport scheme.

Alan and Johanne Powell said it was "idiotic economics" that while they have always cared for their daughter, Siobhan (29), at their Wexford home for three decades they can no longer do so because of cutbacks to her critical transport scheme.
 
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ibis

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It saved google the Dutch tax it was paying on the profits of the Dutch company sandwiched between the Irish resident company and the Irish non resident managed and controlled from Bermuda.

If the old arrangement was such a burden on the revenue commissioners, it would have been changed long ago.
No, that's incorrect. The Dutch subsidiary paid no tax because it routed all its income to Bermuda. All the Dutch subsidiary did was avoid the Irish withholding tax. Google's savings are the same either way.
 
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