Look who owes Ireland. . .

11229689_1057516514260765_7546518945015317525_nApple is estimated to owe seventeen billion (yes BILLION) euro in unpaid corporation back-taxes to the Twenty-Six County exchequer.

And looking to the future, if this one US corporation actually paid the full 12.5% rate of corporation tax the state could receive an estimated FOUR BILLION in tax revenue from just this one company each year.

For comparison the state currently takes an average of just €4bn in corporation tax from every domestic and international company combined. Yes, COMBINED.

Do you find it hard to believe these figures? Do you think éirígí has made them up? Or perhaps you think we used the Anglo-Irish Bank approach and ‘picked them out of my arse’?

The actual source of these figures is that well-known hot-bed of revolutionary socialist republicanism – J.P Morgan.

Back in May J.P Morgan issued a ‘worst case’ scenario report on the EU’s ongoing investigations into the tax relationship between Apple and the Twenty-Six County state.

In the report J.P Morgan estimated that Apple may be liable for up to $19bn (€17bn) in back taxes stretching back the best part of twenty-five years. This figure constitutes the difference between what Apple should have paid in corporation tax and what Apple actually paid.

The report, which was compiled by a senior J.P Morgan analyst by the name of Rob Hall, states that Apple annually channels $42bn (€37bn) of before tax profits through its Irish operation. If the 12.5% corporation tax rate was applied to this figure the Dublin government would receive €4bn+ each year. Yes, EACH YEAR from just this one company.

In reality Apple have consistently paid only a fraction of the nominal 12.5% rate, leading to the exchequer receiving tens of millions of euro instead of thousands of millions per year.

Apple is just one of an estimated 700 US corporations that are based in Ireland. Many have chosen to locate their European, Middle Eastern, African and even Asian headquarters here. Some of the better known companies that avail of the Twenty-Six Counties corporation tax regime include Google, Linkedin, Facebook, Intel,. Microsoft and Hewlett Packard.

In 2010 these US companies collectively channeled $95.6bn (€86.1bn) in pre-tax profits through their Twenty-Six County based operations (according to the US Bureau of Economic Analysis).

Yes, €86,000,000,000 before they paid corporation tax. And yet the IDA admit they actually only paid about €2.7bn in corporation tax that year. That’s the equivalent of a 2.5% rate of tax – a long way from the nominal rate of 12.5%.

If these US corporations paid the nominal 12.5% rate back in 2010 the exchequer would have benefited to the tune of €10.7bn in that one year alone. Remember 2010 was the year the Troika took de-facto control of the Twenty-Six County state. No austerity for the private corporations it seems.

Our so called leaders are very keen to tell us that the US corporations are great for Ireland, when in truth the opposite is true. Ireland is great of the US corporations.

For every worker a US corporation employs in Ireland they declare €870,000 in profit (2010). Yes, read it again. Why wouldn’t these companies allow a few crumbs to fall from their over-laden tables.

In return for these crumbs they have bought and sold the entire Irish political system, with Fianna Fail, Fine Gael, Labour and Sinn Féin all clambering over each other to protect the Holy 12.5% rate of corporation tax in the Twenty-Six counties. And in the Six Counties they can’t lower the current rate of corporation tax (20%) quick enough.

For our part we in éirígí believe that all corporations should pay not only 12.5% but a far higher rate of tax on their profits. These profits, are after all, created off the back of the labour and consumption of ordinary people. Without workers or customers there would be no profits in the first place.

From the éirígí facebook page, here.

Posted on September 29, 2015, in Anti-social activity, Corruption, Economy and workers' resistance, Irish politics today, Toadyism. Bookmark the permalink. Comments Off on Look who owes Ireland. . ..

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