BUDGET MOVES THAT will see Ireland crack down on “stateless” corporations that register in Ireland for tax purposes have been welcomed by two US senators.
Former Republican Party presidential candidate John McCain and his Democratic colleague Carl Levin are two of the leading members of the Senate committee investigating tax avoidance by multinationals.
Levin and McCain had previously insisted that Ireland is a tax haven, despite the Irish ambassador to the USA’s assurances to the contrary.
In a joint statement today, the pair said that while the plan was to be welcomed, questions remained.
“Important questions do remain, however, including whether the new rules will continue to allow Irish subsidiaries to dodge taxes by, for example, excluding substantial income from the 12.5 per cent Irish tax rate, calculating taxable income in ways that produce a lower effective tax rate, or simply declaring tax residency in a tax haven with no corporate tax.”
The statement continued that the two senators wanted Ireland to “close the door” on what they called “egregious” tax abuses.
Yesterday, Michael Noonan pledged to close a loophole that allowed some of the biggest companies in the world use Ireland to ensure they pay lower taxes.