Is the proposed 3% EU tax on online ads and other online revenues reasonable?


Patslatt1

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The investors in Royalty Pharma and Royalty Pharma aren't paying any tax at all because the vehicle they are registered to in Ireland is exempt from corporation tax.

That's the reason why this company registered the Unit Trust Private Company.

And quite apart from that no corporation in Ireland pays 12.5% corporation tax. Nor nowhere near it.
Domestic operations companies have little access to tax havens and likely pay 12.5% since there aren't many worthwhile tax breaks left. Investing in film production is very risky, for instance.

International companies in the digital markets have tax haven tax breaks as is well known.
 

Patslatt1

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So....

No Customs Duty
No VAT
No meaningful Corporation Tax

What a wonderful world they have created.
In principle, taxes should be decided after investigation of transfer pricing between domestic and foreign operations of a company on a case by case basis. This would be so onerous as to be almost impossible maybe.
 

Lumpy Talbot

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No
I begin to wonder sometimes whether we have lobbyists for corporations on this forum. The idea that somehow or other they are stumping up 12.5% corporation tax or anything like it is laughable.

And this is after the news articles about Starbucks, Amazon, Google, Apple over the last few years and the actual tax they pay which is nowhere near the official corporation tax rate in Ireland or anywhere else for that matter- with the exception being offshore jurisdictions where the corporation tax rate is zero. This is not accidental.

We apparently have a large share of the aircraft leasing business worldwide. Except we don't because we are only one leg of a tax avoidance strategy which means the aircraft leasing business takes place in offshore tax havens (Bermuda, Caymans, etc).

Those companies who do pay any corporation tax in Ireland generally keep their accountants busy each year finding ways to claw back the little tax they paid in the previous year.

The target there is actually 'zero'.

There is a reason Royalty Pharma opened a new sort of registered corporate vehicle in Dublin and maintain their actual head office in New York. And it isn't for the cachet.
 

Lumpy Talbot

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No
Do people actually realise that the phrase 'best little country in which to do business' actually means that it is one of the most amenable to tax avoidance?

Or do they think business interests are referring to the bracing country airs?
 

Patslatt1

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Do people actually realise that the phrase 'best little country in which to do business' actually means that it is one of the most amenable to tax avoidance?

Or do they think business interests are referring to the bracing country airs?
A good third level education system and the low corporate income tax rate (still high commercial rates and moderate employer payroll taxes) are the principal competitive advantages of Ireland. Ireland has some serious disadvantages such as low infrastructure spending for a decade, very high housing costs and slow adoption of IT.

The corporate tax breaks started in the late 1950s for manufacturing after the terrible 1950s mass emigration, about 50,000 a year net on a population of 2.75 millions, which would be equivalent to about 100,000 a year on today's 5.7 million population. Whole towns and villages lost a large part of their young population, especially in the western counties. The role of those tax breaks in modernising the economy has never been forgotten.
 
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