The Mudcat Café TM
Thread #165570 Message #4000856
Posted By: Iains
15-Jul-19 - 02:09 PM
Thread Name: BS: Brexit #3: A futile gesture?
Subject: RE: BS: Brexit #3: A futile gesture?
Ireland's position at number 33 is quite interesting because in terms of GDP per capita Ireland ranks about number 5 in the world rankings.
Should the EU introduce its much touted tax harmonisation rules I suspect Ireland could be very heavily impacted.
The distortion of Ireland's economic statistics (including GNI, GNP and GDP) by the tax practices of some multinationals, led the Central Bank of Ireland to propose an alternative measure (modified GNI or GNI*) to more accurately reflect the "true" state of the economy.
Foreign-owned multinationals continue to contribute significantly to Ireland's economy, making up 14 of the top 20 Irish firms (by turnover), employing 23% of the private sector labour-force, and paying 80% of business taxes.
Given the importance of US multinationals to Ireland's economy (80% of Irish multinational employment, and 14 of the 20 largest Irish firms), the passing of the Tax Cuts and Jobs Act of 2017 is a challenge to Ireland. Parts of the US TCJA are targeted at Irish multinational tax schemes (especially the move to a modern "territorial tax" system, the introduction of a lower FDII tax on intellectual property, and the counter-Irish GILTI tax regime). In addition, the EU's proposed Digital Sales Tax (and stated desire for a Common Consolidated Corporate Tax Base), is also seen as an attempt to restrict the use of the Irish multinational tax schemes by US technology firms.
These impending changes coupled with a potential no deal Brexit will impact the Irish economy very heavily.