| 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: Sep 23, 2014 - 12:02 PM

G20 finance ministers reaffirm commitment to tax reform; Ibec takes Finfacts' advice
By Michael Hennigan, Finfacts founder and editor
Sep 22, 2014 - 9:49 AM

Email this article
 Printer friendly page

OECD headquarters, Paris

Finance ministers of the G20 group of nineteen leading developed and emerging economies, meeting in Cairns, Australia, at the weekend, confirmed their support for the interim global corporate tax proposals that were published last week by the Organisation for Economic Co-operation and Development (OECD). Meanwhile in an illustration of the rapid pace of change that have naysayers reeling, Ibec, Ireland's top business lobby group, has urged the Government to take pre-emptive action to scrap the 'Double Irish Dutch Sandwich' scheme, the main legal arrangement used in Ireland by American companies to avoid global corporate taxes - as with the property bubble Finfacts has moved from being an outlier to being part of the new conventional wisdom.

Ireland will retain several advantages in attracting FDI (foreign direct investment) and the biggest risk is that policy makers continue to believe their own propaganda/spin and do not seriously recognise the challenges as well as the opportunities - - most Irish Government reports are typically full of platitudes and aspirations with little if any space for acknowledgement of weaknesses.

Joe Hockey, Australian treasurer, at the weekend in Cairns said  the attempt to tackle global tax evasion by multinational companies has met an "extraordinary effort" by global finance ministers, with tax regimes about to experience "structural reform at a global level."

According to The Sydney Morning Herald, Hockey said the OECD and the G20 had made an "extraordinary effort" to clamp down on global tax avoidance by multinational corporations in recent months by delivering half of the promised actions from its base erosion and profit shifting (BEPS) action plan.

"We welcome significant progress achieved to date on the two-year action plan with roughly half the actions delivered this year as promised," he said. "This is an extraordinary effort and I congratulate the OECD and the G20 membership which unanimously endorsed that effort. This work is structural reform at a global level."

As part of the G20's efforts to crackdown on global tax evasion, Hockey said finance ministers had agreed to introduce a 'common reporting standard' so the Australian Tax Office knew when someone opened a bank account anywhere in the world.

"We cannot let any small economy in the world, even the smallest island, not be a part of this process," he said. "We are going to help the developing world actually implement these sorts of tax initiatives so there is nowhere for the tax cheats to hide."

The G20 finance minister and central bank governors' meeting in Cairns concluded on Sunday, with Hockey saying G20 finance ministers are now 90% of the way towards meeting a 2% target for additional global growth.

This year has been marked by remarkable progress against international tax evasion and corporate tax avoidance.

For example Austria and Luxembourg  had held up an amendment to the EU’s savings directive for six years to protect banking secrecy and then in 2014 they agreed to sign an OECD protocol on automatic exchange of bank information.

The Algirdas Šemeta EU tax commissioner said last March:

“Switzerland and the four other countries now accept that the automatic exchange of information (AIE) must be at the core of their relations with the EU in taxation.

“This would have been inconceivable even a year ago, and it shows how far we’ve come in changing mind-sets globally.”

Switzerland would never amend its 1934 bank secrecy law was the conventional wisdom!

More than 65 countries and jurisdictions have already publicly committed to implementation of the OECD’s standard, while more than 40 have committed to “a specific and ambitious timetable leading to the first automatic information exchanges (AIE) in 2017.”

AIE is very important because the existing system that applies in many countries is that foreign tax authorities have to apply for information on a case-by-case basis.

"Almost overnight legal business practices become unacceptable,” said Patrick Odier, president of the Swiss Bankers Association, this week at the group’s annual general meeting. “I’ll put it simply: the banks in Switzerland accept AIE. We’re not doing it because it’s the best solution. We’re doing it because it has prevailed internationally,” said Claude-Alain Margelisch, chief executive of the association.

Many are shocked by the progress and the OECD will publish its final proposals in a year.

Political gridlock in Washington DC will not stall progress.

“The OECD’s initial guidance…, if adopted by key OECD member countries and observers as expected, will have a significant impact on US multinationals with overseas operations, whether or not the US makes changes in regulations or practices as a result of the recommendations,” said Manal Corwin, national leader of International Tax at KPMG LLP and a former deputy assistant secretary for tax policy for international tax affairs at the US Treasury Department, according to The Wall Street Journal.

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

© 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