| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Feb 18, 2014 - 6:42 AM

Corporate Tax 2014: Ireland's effective rate for US companies in 2011 was 2.2%
By Michael Hennigan, Finfacts founder and editor
Feb 11, 2014 - 12:44 AM

Email this article
 Printer friendly page
Enda Kenny, taoiseach, Angel Gurría, OECD secretary-general, and Eamon Gilmore, tánaiste, at the OECD headquarters, Paris, Feb 07, 2014.

Corporate Tax 2014: The effective rate of corporation tax for US companies in Ireland in 2011 was 2.2% according to a paper published on Monday by a Trinity College academic [pdf]. It was 2.5% in 2010 according to Finfacts.

In the paper, Jim Stewart uses US Bureau of Economic Analysis data to determine the effective rate for 2011 and also deals with the claims by Enda Kenny, taoiseach, that the effective tax rate in Ireland is 11.9% - - the effective rate is the ratio of actual tax paid to reported profits.

We at Finfacts have covered both the effective rate and Kenny's misleading claim,  several times over the past year and it's not new news even though that is the impression presented.

What the surprise/shock news highlights is how rare official spin is challenged.

Will it be a surprise or shock when the "Dutch Irish Dutch Sandwich" is ended, that €50bn in services exports and related virtual Irish output will vanish?

Last August Finfacts calculated that the effective rate for US companies was 2.5% in 2010.

Enda Kenny first used the 11.9% effective rate talking point at the Davos World Economic Forum in January  2013. We pointed out then  January 2013 that the claim was bogus and outlined the methodology for the template company used in the PwC/World Bank 'Paying Taxes report.

We said the case study company was:

  • A limited liability company;
  • Produces ceramic flower pots and sells them as a retailer;
  • Operates in the country’s largest business city;
  • Is 100% domestically-owned and has five individual owners;
  • Has purchased capital equipment for use in the business;
  • Has 60 employees;
  • Sells a property and realises a capital gain during the year;
  • Pays a dividend at the end of the year;
  • Is in its second year of operation;
  • Has a trading loss brought forward from previous year.

On Sunday, we provided more detail on the methodology following Kenny's repeat of the 11.9% claim at a meeting at OECD headquarters last Friday:

SEE: Corporate Tax 2014: Yahoo! joins “Double Irish Dutch Sandwich” club; IDA Ireland wants more members 

Selection of Finfacts tax reports 2013/14:

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

Corporate Tax: Kenny reassures Facebook but Ireland's rate is too high

Foreign government requests Bermuda to investigate Microsoft's Irish-linked subsidiaries

G-20 Australian presidency focuses on tax "leaking bucket"; Ireland still in denial?

Corporate tax reform and the biggest tech tax havens

Ireland's new International Tax Charter: More political kabuki

Ireland's tax man for Silicon Valley

Corporate Tax 2014: UK's revenues plunge; France considers reform

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March