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23rd July 2014 | Uncategorised

Greens call for pre-emptive ending of corporate tax loopholes

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As part of a submission to theGovernment’s Base Erosion and Profit Shifting (BEPS) public consultationprocess 

Wednesday23 July 2014, Dublin.

OnTuesday 22 July the Green Party made its submission to the Department ofFinance’s Base Erosion and Profit Shifting (BEPS) consultation. BEPS is aninternational review of corporate tax regulation, being led by the Organisationfor Economic Co-operation and Development (OECD). The intention is toupdate tax rules which are being aggressively exploited by multinationalcorporations in order to deny governments legitimate revenues from corporateprofits.

GreenParty Finance Spokesperson, Cllr Mark Dearey, said today: “Rather than awaitingthe conclusion of the OECD review, we believe the government should make apre-emptive move and signal that we want an end to the ‘double Irish’ taxloophole. Our reputation has already been badly damaged by the practice, andrather than being forced into action we should show some responsible leadershipby declaring now that we would like to see it closed down.

“Europecan no longer afford the €1 trillion in corporate taxes that are avoided eachyear. If multinationals paid their fair share of tax we might be better able tofund the public education system which helps to create the intellectualproperty that is the source of their profits in the first place. Most of thoseintellectual property assets are currently held in Bermuda and other offshoretax havens. By changing the rules, Ireland might benefit as companieswould bring their intellectual property assets back to their main Europeansubsidiaries based here.

“Weare also encouraging the Irish government to support measures such ascountry-by-country reporting to provide greater transparency of what ishappening in the increasingly globalised capitalist system. We need torecognise the reputational damage caused by the practice of ‘tax inversion’,where US companies fold into an Irish subsidiary in order to avoid tax in theUS, and be transparent about the companies which invert here. Overall, weshould adopt a tax policy which follows the guiding principle of BEPS: thattaxation should follow real economic activity.”

GreenParty Leader, Eamon Ryan said: “We are calling on the government to join withthe eleven other nations who comprise 90% of Eurozone GDP, and commit tointroducing the Financial Transaction Tax (FTT). The FTT is weapon in thearmoury of governments seeking to prevent another financial crisis sparked byexcessive speculation and leveraged trading instruments. The future for theIrish Financial Services Centre has to be in more responsible long-term fundinginstruments and project finance, which would not be threatened by a tax focusedon short-term trading activity.”

ENDS

 

Notesfor Editors:

Pleasesee the Green Party submission to the Department of Finance BEPS consultation at this link:

http://greenparty.ie/assets/docs/BEPS%20Submission%20Green%20Party%2022%20July%202014.pdf

 

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ENDS