Irish Economy
Bruton back in US to reassure investors on Irish tax - can he?
By Michael Hennigan, Finfacts founder and editor
Nov 13, 2014 - 7:47 AM

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Richard Bruton, enterprise minister, is back in the US to reassure investors on the Irish corporate tax regime but apart from the certainty of the headline rate of 12.5%, the ongoing reform process at global and European level suggests that uncertainty will prevail for sometime.

Bruton is on a trip to the West Coast in particular Silicon Valley and the Mid-West, just weeks after visiting East Coast cities where he implausibly claimed “very positive feedback” for the planned abolition of the 'Double Irish' tax dodge that has saved some American companies billions of dollars in tax payments over the years.

What is self-evident is the mindset of relying on ready-made American jobs remains dominant among policy makers with the indigenous sector - requiring vision, smarts and time - playing its traditional second fiddle role.

We reported Wednesday that Germany and the UK have agreed to restrict so-called patent box incentives including low corporate tax rates, for projects where there is substantial research and development (R&D) done in a country.

Ireland plans to announce intellectual property (IP) incentives in 2015 to be termed a 'knowledge development box' and the European Commission will likely propose a system for the EU similar to the Anglo-German agreement.

Finfacts:

Replacing the Double Irish with Knowledge Development / Patent Box - Part 2

Dublin Web Summit 2014: Separating hype and reality - includes an analysis of Irish enterprise policy.

We report today that on Wednesday Jean-Claude Juncker, European Commission president, proposed an acceleration of tax reform in the EU while the final proposals of the G20/OECD BEPS (Base Erosion and Profit Shifting) Project will be published by end 2015.

The IDA Ireland mission to Silicon Valley, San Francisco, Los Angeles, Minneapolis and Chicago, involves a total of 22 meetings and events.

"These include 14 one-on-one meetings with target and client companies, as well as further group meetings and events in which the Minister and IDA will engage with a total of 41 multinational companies considering investing in Ireland."

Bruton's Department said this is his "24th major investment/trade mission since his appointment 44 months ago."

It's time he also focused on addressing the flaws in his enterprise policy:

Irish Jobs: Policy flaws require Bruton's focus not spinning for headlines

Related tax links

Juncker on Corporate Tax: Poacher-turned-gamekeeper proposes new rules

Germany and UK agree to restrict 'patent box' tax incentives to local R&D

Architect of tax "racket" to commit EU to fight against tax fraud

Hidden Taxes Report: Kenny denies Irish special Apple tax deal despite contrary "evidence"

Luxembourg Leaks: Irish Government's guff on tax system exposed; "Racket" needs to stop

Luxembourg confirmed as massive facilitator of tax avoidance

Bono struggling again as anti-poverty campaigner and tax avoider

Apple says it may have to pay Ireland back tax; Foreign tax rate at 4.4%

Double Irish tax scheme axed; Conventional wisdom wrong again - Part 1

Replacing the Double Irish with Knowledge Development / Patent Box - Part 2

Ireland's small gain from Apple's possible EU tax probe payment

European Commission: Apple given special tax deals by Ireland

Apple's foreign tax rate tumbled after 2007 Irish 'advanced opinion'

G20 finance ministers reaffirm commitment to tax reform; Ibec takes Finfacts' advice

OECD & Tax: Everything grand in Ireland's Republic of Spin?

OECD proposes biggest reform of global business tax rules since 1920s

Finfacts submission to Department of Finance consultation on corporation tax reform

OECD BEPS Project submission from Finfacts: Ireland should embrace corporate tax reform - - includes analysis of underperforming indigenous tradable sector.

Irish corporate tax policy like property bubble driven by short-term interests

IMF explains “Double Irish Dutch Sandwich” tax avoidance

US company profits per Irish employee at $970,000; Tax paid in Ireland at $25,000

Estonia heads OECD tax competitiveness index; Ireland at 15, US at 32


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