Sunday Independent Stupid Statement of the Week November 18, 2012Posted by Garibaldy in Sunday Independent Stupid Statement of the Week.
There’s no name on this piece, but it really does expose just how shameful the Sindo consensus on the economy really is. At the same time as they scream blue murder about the public sector, we get this article expressing great concern that action may be taken to ensure that the likes of Starbucks pays more than £8.6m in tax in the UK over 14 years.
If it had been either Starbucks or Amazon getting a hard time then one might have been inclined to write it off as nothing more than an isolated incident of no major concern to this country but two US multinationals getting the thumbscrew treatment on tax from major European countries in just one week is beginning to look suspiciously like a trend.
When the ECB bounced this country into a bailout two years ago there were fears that we would be forced to give up our low corporate tax rate in return for financial assistance. The Irish Government waged a fierce and apparently successful struggle to protect the 12.5 per cent rate despite our financial woes.
Unfortunately it appears that there is more than one way, many more ways, of skinning a cat. Last April the European Parliament voted in favour of having a “common consolidated corporate tax base”.
If the CCCTB ever became law companies operating within the EU would submit a single European tax return with their tax payments being allocated to individual member countries on the basis of the size of their business in each of those countries. This means that the CCCTB would be very, very bad news for Ireland if it ever came to pass.
Being questioned about paying low tax apparently represents the equivalent of medieval torture. I wonder what the Sindo will say if the MNCs ever actually have to pay even the headline tax rate of 12.5%. I’m too disgusted to read the rest of the paper.