In 2012 ActionAid published a report estimating that a huge new tax loophole deliberately created by the UK government – which it seems is bringing in precious little in terms of jobs or tax revenues – is also likely to cost developing countries some £4 billion (US$6 billion) a year.
Ireland’s dodgy transfer pricing shenanigans – whose history we have written about at length – are likely to be costing similarly vast sums to countries around the world, rich and poor.
Now, from the Debt and Development Coalition Ireland:
“Debt and Development Coalition Ireland (DDCI) has called on the Minister for Finance Michael Noonan to act to ensure that Ireland’s tax model stops hurting countries of the Global South. The global justice organisation was responding to plans announced by the Department of Finance to examine the impact of Ireland’s tax system on developing countries . Members of the public have been invited by the Department to submit their views.
Nessa Ni Chasaide, Coordinator of Debt and Development Coalition said,
“It is very welcome that the Department of Finance is carrying out an analysis of how Ireland’s tax model effects countries of the Global South. For this analysis to be credible it must examine some of the most problematic features of Ireland’s tax system. These include Ireland’s lax regulation of the IFSC, corporate abuse of Ireland’s system of tax incentives, and the existence of tax structures, like the so called ‘Double Irish’, that enable corporations to use Ireland as a conduit to tax havens.”
“While Ireland has a stated position of support for improved tax transparency, it has failed to lead the way in making essential changes that would force corporations to report fully, on a country by country basis, on their profits and taxes. Minister Noonan has also refused to reveal who the real, beneficial, owners of companies in Ireland are. DDCI calls on Minister Noonan to urgently establish a publicly accessible register of the identities of the real owners of companies, trusts and foundations to ensure an end to the practice of shell companies registering in Ireland.”
DDCI will launch a campaign calling for a public register of the beneficial owners of companies, trusts and foundations at the launch of DDCI’s People’s Purse Campaign – a Campaign for Global Debt and Tax Justice, this Wednesday 25th June at 7pm at Connolly Books, Temple Bar, Dublin.
DDCI’s submission to Government on the spillover analysis can be found here.
Nessa Ni Chasaide: Coordinator, Debt and Development Coalition Ireland 01 6174835 / 087 7507001
Notes to the Editor:
A full overview of the impact of Ireland’s tax model on countries of the Global South can be found here: Killian, Sheila (2011), Driving the Getaway Car? Ireland, Tax and Development, Published by Debt and Development Coalition, Christian Aid, Afri, Comhlamh, Oxfam, Trocaire.