US firms warn Irish over tax move

[Pale Blue Dot]

Source: The Telegraph

The warning – from executives at Microsoft, Hewlett-Packard (HP), Bank of America Merrill Lynch and Intel – spoke of the "damaging impact" on Ireland's "ability to win and retain investment" should the country's corporation tax rate be increased from 12.5pc.

It came as talks between members of the Irish government and the European Union and the International Monetary Fund continued around the clock on a financial aid package of as much as €100bn to shore up the country's beleaguered banking system.

Although Brian Lenihan, the Irish finance minister, has indicated Ireland's 12.5pc corporation tax rate – the lowest in the eurozone – will not be raised, a number of factions within the European Union are known to have pushed for it to be increased in return for the bail-out.

Nicholas Sarkozy, the French president, said yesterday that while raising taxes will not be a condition of the bail-out, he expects Ireland to raise its corporation tax rate: "It's obvious that when confronted with a situation like this, there are two levers to use: spending and revenues. I cannot imagine that our Irish friends, in full sovereignty, this because they have a greater margin for manoeuvre than others, their taxes being lower than others."

The US warning was written by Lionel Alexander, president of the American Chamber of Commerce in Ireland, and a senior HP executive.

Read more: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8148882/US-firms-warn-Irish-over-tax-move.html

[leveymg]

1. The fact that they lowered the corporate tax rate is the reason they're in this mess - oh yes, and

tax sheltering and facilitating tax evasion on a colossal scale for Multinationals by Irish banks. Guess who benefited by this - Microsoft, Hewlett-Packard (HP), Bank of America Merrill Lynch and Intel - Ireland was just transfer point for tens of billions in "hot money" (disguised investments) headed for China, which these same companies didn't want to report as such for tax and a variety of reasons.

Just wait until the same thing catches up with the U.S. banks - just wait until people start to catch on that tax evasion was one of the primary reasons why they've been shipping jobs to China -- you thought Q3 '08 was bad?

[Metta]

2. Ah, corporate blackmail and extortion. Fascism here is no longer benign.

And hasn't been for years.

[NBachers]

3. Nice little country ya got here - be a shame if anything . . . happened to it

[xchrom]

4. corporations continue their assault on nations.

like they've become Princes and Principalities.

[Prophet 451]

5. Well, they would say that, wouldn't they?

Ireland's low rate of corporate tax is the primary reason they're now in this mess and this barely disguised threat from multinational corporations is akin to a protection racket.

[RUMMYisFROSTED]

6. Because those corps are barely scraping by.

:nopity:

[lonestarnot]

7. Oh wait, say it again, CHamber of CONmerce.