Ireland edges into top 10 global tax haven ranking

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DUBLIN, Oct 1 (Reuters) – Ireland has leapfrogged the Bahamas to become the world’s ninth most significant tax haven, according to a ranking by pressure group the Tax Justice Network, which campaigns for tax transparency.

Ireland’s first appearance in the global top 10 puts it alongside countries such as the British Virgin Islands, which tops the list, and the Netherlands, having edged up from 11th place in the previous report in 2021.

The study measures the amount of corporate financial activity in countries, including money flows, as well as transparency and tax schemes on offer, assigning a points-based ranking.

The Tax Justice Network is highly critical of Britain’s overseas territories, such as the Virgin Islands. But it also highlights the growing importance of Ireland.

The list was published shortly after Ireland received $14 billion in back taxes from Apple AAPL.O, after the European Court of Justice said the country’s favourable tax treatment of the iPhone maker had been unlawful.

A spokesperson for the UK government said it would tackle “tax avoidance and illicit finance … including in the Overseas Territories and Crown Dependencies”.

A spokesperson for Ireland’s Department of Finance said Ireland was not a tax haven and that it had taken steps to tackle aggressive tax planning by reforming its tax code and that it supported international tax reform.

Nessa Ni Chasaide of Ireland’s Maynooth University said Dublin had responded to criticism by changing rather than dropping favourable tax schemes, allowing international companies to write off the value of intellectual property against profits to pay less tax.

“Ireland plays global tax games in a very sophisticated way,” she said. “Every time it comes under pressure, it has a new game. Ireland is laughing all the way to the bank.”

Corporate tax revenues have exploded in Ireland over the last decade, jumping from 4.4 billion euros ($4.87 billion) in 2015 to an expected 29.5 billion euros this year, not including the Apple windfall.

The receipts, mainly paid by a handful of U.S. multinationals, now make up 28% of all tax collected in Ireland each year, propelling its public finances to becoming the strongest in Europe.

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Reporting By John O’Donnell; Editing by Christina Fincher and Jonathan Oatis

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As one of Reuters’ chief correspondents, John focuses on stories at the intersection of industry, the economy, finance and politics. From around Europe, chiefly London, Germany and Brussels, he has reported about the fallout of war, the energy crisis, China’s sanctions regime, economic rescue efforts for Afghanistan, money laundering in the Baltics, corporate frauds and bank scandals. He has also covered the 2008 economic crash and aftermath, the European Central Bank, European politics and banking.

Source link : https://www.reuters.com/markets/europe/ireland-edges-into-top-10-global-tax-haven-ranking-2024-10-01/

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Publish date : 2024-10-01 16:13:36

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