| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy


Finfacts changes from 2015

RSS FEED


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.

Welcome

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

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Feb 3, 2015 - 3:42 PM


Bono defends Irish tax regime to defend his Dutch one
By Michael Hennigan, Finfacts founder and editor
Oct 12, 2014 - 3:56 PM

Email this article
 Printer friendly page

In an interview published today in the Observer, the British newspaper, Bono, the font man of the Irish U2 rock group, has defended the Irish corporate tax regime as U2's own use of a Dutch letter-box company to avoid tax, has dented Bono's bona fides as a celebrity anti-poverty campaigner.

Bono avoids discussing issues like specific tax dodges such as his own and the Double Irish while in common with Enda Kenny, taoiseach, he answers a question that hasn't been asked by arguing that Ireland has needed a low corporation tax rate - - there is no pressure to change the headline 12.5% rate.

Bono says Ireland has no natural advantages. However, Denmark, another small economy, has become a world leader in wind energy with 30,000 working in the sector - - more than the US pharma companies responsible for 50% of Ireland's goods exports - - while Ireland is fretting about Apple, Google and the like, who employ most of their mainly Irish-based admin staff from Europe.

At the Clinton Global initiative in 2013, Bono criticised external resource companies in Africa who use the same Dutch letter-box facilities as himself.

Finfacts: Bono's hypocrisy on Africa, corporate tax avoidance in Ireland

There is a big difference in arguing for Ireland's low 12.5% rate and facilitating Apple to reduce its foreign tax rate in 2012 on 61% of its global revenues or $37bn to 1.9%

In the interview, Dorian Lynskey of The Observer writes:

Of course, the biggest blow to Bono’s activist reputation has been U2’s collective decision in 2006 to transfer U2 Ltd, which handles their publishing royalties (not the bulk of their income but a significant chunk), from Ireland to the Netherlands to reduce their tax bill. Their Glastonbury set attracted a small lobby of banner-waving protesters. Edge is painstakingly even-handed about it. “Was it totally fair? Probably not. The perception is a gross distortion. We do pay a lot of tax. But if I was them I probably would have done the same, so it goes with the territory.”

Like the protesters, I think the arrangement sits badly with Bono’s development work and we go back and forth for a while. It isn’t a clandestine offshore tax haven, Bono insists. “All of our stuff is out in the open. How did people find out about it? Because it’s published. The sneakiness is when you don’t even know what’s going on.” Eventually, we agree to disagree, and the conversation moves on to Ireland’s corporation-friendly tax laws, currently the subject of an EU investigation.

“Look, Ireland is not going to back down on this,” he says. “We are a tiny little country, we don’t have scale, and our version of scale is to be innovative and to be clever, and tax competitiveness has brought our country the only prosperity we’ve known. That’s how we got these [tech] companies here. Little countries, we don’t have natural resources, we have to be able to attract people. We’ve been through the 50s and the 60s, and mass haemorrhaging of our population all over the world. There are more hospitals and firemen and teachers because of [Ireland’s tax] policy.”]

Given the international climate against tax avoidance and evasion, Bono has likely given up on an aspiration to be awarded a Nobel Peace Prize.

Related tax links

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

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

Related Articles


© Copyright 2015 by Finfacts.ie

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