The good news about Latin America is that the region’s economy will rebound much faster than expected, mainly because of a sharp rise in U.S. and Chinese imports. The bad news is that the region’s politics will most likely ruin the recovery.
US shift on corporation tax could put huge pressure on Ireland Biden’s stance crucial given American multinationals’ presence here
about an hour ago
Ireland has been focused on the OECD talks on global corporate tax reform, which G7 finance ministers are trying to progress at this weekend’s talks in London. But arguably what happens in the US is just as important for Ireland – perhaps more so. And so Saturday’s meeting on the margins of the G7 between Minister for Finance Paschal Donohoe and US treasury secretary Janet Yellen takes on a particular importance.
What happens in the US will be vital for Ireland given the huge presence of big American multinationals here. And the Biden administration is also a key player in the wider OECD talks.
Ambassador, with these Jammie Dodgers are you really spoiling us? Planet Business: Krispy Kreme, inflation fears and taking a dip in a 10th-storey pool
about an hour ago
Image of the week: Pool view
Hypnotic media footage of swimmers in the Sky Pool, a fully transparent 25m-long box that stretches between the 10th storeys of two apartment blocks at Embassy Gardens, London, circulated on a hot Tuesday this week, prompting a social media referendum on whether people would themselves take the plunge into a pool some 35m (115ft) above the street, their bodies fully on display to passing traffic and dwellers of the apartments below. Alas, the decision is not for anybody to make, as the Sky Pool is open only to residents of the development by Irish company Ballymore – and even then, not to all of them, with people occupying flats bought through an affordable housing scheme unable to access it. Side note: Dublin needs pools – indoor, outdoor, kidney-shaped, kayak-shaped, transparen
What does it mean for Ireland?
First, a deal means less corporate tax revenue. Many big multinationals have their international headquarters in Ireland from where they sell in the EU and around the world.
In future, the countries they sell in to will have the right to raise a tax based on their sales in that market. This is a departure from the normal practice of taxing profits.
And because the big companies will pay more tax in big consumer markets, they will pay less in Ireland.
The Department of Finance has tentatively estimated that this could cost the Irish exchequer more than â¬2 billion, out of annual corporate tax revenues of close to â¬12 billion. Following the meeting Minister for Finance, Paschal Donohoe, mentioned a figure of â¬2.2 billion plus. It is hard to be precise, but tax experts agree that it could be in this ballpark.
EU states could secure between â¬50 billion and â¬200 billion in additional revenue under an international agreement on a minimum corporate tax rate, says a report released by the EU Tax Observatory.
The scale of the increase would depend on the number of signatory countries and the rate adopted, it says.
The report, entitled Collecting the Tax Deficits of Multinational Companies: Simulations for the European Union concludes that a 25 per cent minimum rate across the EU, combined with an EU decision to tax profits earned by non-European multinationals on EU territory at the same rate, would increase EU revenue by more than â¬200 billion.