ireland closes tax loophole as unveils postausterity budget
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Ireland closes tax loophole as unveils post-austerity budget

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Ireland closes tax loophole as unveils post-austerity budget

the Irish Government building including the Irish Prime Minister's office in Dublin, Ireland
London - AFP

Ireland pledged Tuesday to close a corporate tax loophole that has brought it under the international spotlight as it unveiled a budget that ends a cycle of austerity cuts.
Finance Minister Michael Noonan told parliament that the "Double Irish" system, which allows multinationals to transfer profits to tax havens, would be abolished next year for new companies, and by 2020 for existing users of the scheme.
"I am abolishing the ability of companies to use the Double Irish by changing our residency rules. All companies in Ireland must be also tax resident in Ireland."
The move comes after the European Commission opened an investigation on Ireland's tax deal with US tech giant Apple although the arrangement in question there is not the "Double Irish".
Europe's Commissioner for Taxation Algirdas Semeta welcomed the change, which still has to be approved by parliament.
"The European Commission has to look at the detail and how it will work in practice but the intention is very good," he said.
"It also explains how it's important to push the agenda to fight against tax fraud and avoidance as high as possible."
Ireland has successfully attracted many multinationals thanks to its low 12.5 percent corporate tax rate, but has come under scrutiny for arrangements that in companies in effect pay much less.
As he announced the corporate tax reform, Noonan said Dublin would work to enhance Ireland’s attractiveness to multinationals, who employ over 160,000 people in over 1,000 companies.
- 'End of budgetary austerity' -The announcement on the tax loophole came as the government unveiled its first post-austerity budget since the country nearly went bust four years ago.
Ireland entered a massive European Union and International Monetary Fund rescue programme in 2010 after expensive bank bailouts, a property market collapse and ravaged tax incomes.
Since 2008, Ireland has taken 30 billion euros ($38 billion) in spending cuts and tax hikes, an adjustment worth roughly a fifth of gross domestic product (GDP).
But the coalition government said Tuesday the 2015 spending plan marks "the end of budgetary austerity."
The 2015 budget "is about securing the recovery, building for the future and broadening it to families across the country,"Noonan told lawmakers.
Noonan said the department of finance was economic growth this year of 4.7 percent, 3.9 percent in 2015 and 3.4 percent in 2016-2018.
He also said the budget measures would reduce the deficit next year to 2.7 percent of GDP next year, well within the EU’s 3.0 percent target.
Despite that deficit, Noonan announced cuts to income tax rates and thresholds.
The top rate of tax will be cut from 41 percent to 40 percent while the point at which taxpayers enter that rate rose by 1,000 euros to 33,800 euros.
There are also changes to the Universal Social Charge (USC), a tax introduced in 2011 that has proven very unpopular, reducing the rate for some lower earners.
"These changes enhance the progressivity of our income tax system with the top 1.0 percent of income earners now paying 21 percent of all income tax and USC collected.
"In contrast, the bottom 76 percent of income earners will pay 20 percent of the total," he added.
The price of 20 cigarettes will increase by 40 euro cents at midnight to over 10 euros a pack.
But opposition finance spokesperson from the Fianna Fail party, Michael McGrath, said Noonan had "made a mess of it."
"This budget is all about using borrowed money to buy votes," he told parliament.
- 'Travelled the long road' -Among the budget increases, Minister for spending, Brendan Howlin, announced additional funding for new teachers, police and the arts and said that a public sector hiring freeze would be removed starting next year.
He also unveiled an increase in child benefits of 5 euros per month and a partial return of the welfare Christmas bonus, the first social welfare increases since 2009.
Howlin also said 2.2 billion euros in funding would be made available to tackle Ireland's social housing waiting lists over the next three years.
But the ministers warned that the recovery was not certain and urged caution.
"We have travelled the long road and are now at a very important crossroads," said Noonan.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ireland closes tax loophole as unveils postausterity budget ireland closes tax loophole as unveils postausterity budget

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ireland closes tax loophole as unveils postausterity budget ireland closes tax loophole as unveils postausterity budget

 



GMT 16:17 2018 Thursday ,30 August

Five Saudi women pilots granted GACA licences

GMT 05:06 2024 Tuesday ,06 February

New hunt for flight MH370 gets under way

GMT 16:10 2012 Tuesday ,20 March

Abdullah Al-Ruwaished denies marriage rumours

GMT 07:30 2012 Thursday ,12 January

Retailers stay open till midnight

GMT 16:51 2017 Saturday ,22 July

Suspects with terror links arrested

GMT 06:22 2012 Wednesday ,01 February

Egypt revolution’s broken promises

GMT 15:20 2017 Sunday ,07 May

2 arrested for possessing narcotics in Oman

GMT 14:27 2012 Tuesday ,02 October

The once known Yemen no longer exists

GMT 16:28 2017 Friday ,01 September

Saudi Arabia condemns suicide bombing in Algeria

GMT 12:53 2012 Tuesday ,16 October

The two faces of Kuwait

GMT 19:10 2012 Thursday ,29 November

No solution without reconciliation

GMT 04:58 2013 Wednesday ,10 April

Agriculture blamed in ocean \'Dead Zone\'
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice