Irish lack ammo in corporation tax battle 22 Nov 2016 Theresa May and Donald Trump’s plans to slash UK and U.S. corporation tax rates are ominous for Ireland. Cutting its headline rate further is toxic politically and would reduce a key source of revenue. It leaves Dublin reliant on EU access as competition for investment grows.
Guest view: A new blueprint for corporate tax 29 Sep 2016 Europe's complaint against Ireland and Apple reflects a problem bigger than any one company or country. The global approach to tax is past its sell-by date. A system based on revenue location, and that treats multinationals as single entities, could share the pie more fairly.
Irish budget handout spreads largesse beyond Apple 22 Sep 2016 The government may phase out an unpopular levy introduced during the financial crisis. A strong recovery gives it scope to part with a tax that brings in 8 percent of revenue. Offering goodies to workers may also quiet demands that it accept Apple’s 13 bln euros in back taxes.
Better to fly Europe’s airlines than buy them 12 Sep 2016 Fuel prices have fallen, but that has incentivised European carriers to keep too many planes airborne. Demand is too weak to meet the supply, which means ticket prices are set to fall, and with them airlines’ profitability.
Dublin faces fiendishly tough call on Apple appeal 2 Sep 2016 Ireland has a stark choice: take 13 bln euros from the tech giant in back tax and hurt its standing with multinationals, or keep its national business model intact. With Brexit looming, the safe choice is to appeal. But the country has more scope to annoy Apple than it did.
Apple’s tax spat could blight European banks 31 Aug 2016 The tech giant’s $14.5 bln EU tax bill has shades of a $9 bln U.S. fine handed to BNP Paribas in 2014. Despite big differences, both have the whiff of a transatlantic raid on those deemed able to pay. EU banks awaiting U.S. fines, like Deutsche Bank and RBS, have cause to fret.
Apple makes for an easier target than tax fairness 30 Aug 2016 The EU wants Ireland to recoup up to $14.5 bln from the iPhone maker. Even that's only 6 pct of its cash. U.S. authorities dislike the ruling, but also are eyeing Apple's stash. Both the company and Ireland want their deal to stand. The global tax grab is unlikely to end well.
Europe’s bite at Apple could leave bad aftertaste 30 Aug 2016 The European Commission wants companies to pay their fair share of tax. Zeroing in on Apple’s alleged sweetheart deal with Ireland fits that agenda. But it could misfire. Reeling from Brexit, Dublin might feel pressure to make itself even more friendly to corporate taxpayers.
Apple tax fight is two wrongs in search of a right 25 Aug 2016 A spat between the U.S. and Europe over how firms like the iPhone maker, Amazon and Starbucks pay taxes shows the worst of both sides. America meddles, and Europe moralises. At heart is an issue both sides’ citizens should support: big companies too often avoid paying their dues.
Brazilian meatpacker’s filet job leaves fat to cut 11 Aug 2016 JBS is asking bondholders to approve a plan to carve out non-Brazilian business and move it to Dublin. Tax savings and a lower cost of capital may help juice the valuation. The Sao Paulo-based company, however, is still larded with debt from its $27 bln acquisition spree.
Weaker banks are in EU’s core, not its periphery 1 Aug 2016 A dozen lenders had sub-10 percent post-stress capital ratios and a 400-plus bps loss in the EBA's stress test. Only a third are from troubled "periphery" states like Italy. Perhaps core states should become less sniffy about a Europe-wide deposit protection scheme.
Post-Brexit upheaval complicates Irish tax rethink 15 Jul 2016 Ireland faces a slating from the EU for an alleged sweetheart taxation deal with Apple. The optimistic view is that both OECD and domestic reforms mean Brussels is pushing against an open door. Yet moves by the likes of the UK to slash tax rates could slow any reinvention.
Ireland’s 26 pct GDP growth merits no champagne 12 Jul 2016 Dublin’s statistics office just revised up 2015 growth from 7.8 percent to 26.3 percent. Blame foreign companies using Ireland for tax inversions. Far from a cause for celebration, it’s reason to take Irish GDP figures with a pinch of salt.
Dublin is flunking its investment hotspot test 17 Mar 2016 Multinationals like PayPal love Ireland’s 12.5 percent corporate tax rate. But a flawed Irish property market is causing a drastic shortage of homes for their workers to live. Without cutting building costs, Dublin will struggle to capitalise should the UK quit the EU.
Ireland can weather a brief political squall 29 Feb 2016 Angry voters punished the incumbents in a general election, making a hung parliament likely. With no Podemos or Syriza to rip up the economic rulebook and recovery underway, Ireland can afford stasis. But it needs a government before the UK holds its EU referendum in June.
Irish banks’ bad debt clean-out is paying off 22 Feb 2016 Bank of Ireland said it would pay a dividend in 2016 for the first time since the crisis. No wonder – unlike some EU peers, Irish banks have made progress in hacking back their bad debts. As the economy recovers, the release of provisions could help to bolster capital further.
Ireland can have political stasis without tears 17 Feb 2016 The Irish may end up with a hung parliament when the country heads to the polls next week. That needn’t threaten a roaring economy and strong job creation. The biggest risk to Ireland’s GDP growth would be losing its low corporate tax rate. That’s not in politicians’ interest.
Magic formula fuels Ryanair’s ascent 1 Feb 2016 The lure of cheap flights has proved a match for Europeans’ fear of terrorism. The Irish carrier lowered prices after attacks in Paris, attracted 20 pct more passengers in the latest quarter than a year earlier, and even expanded its margins. High-cost rivals can’t keep up.
Ireland has limited shelter against Brexit storm 26 Jan 2016 The Irish state is right to fret about a UK exit from the EU. It could knock 20 pct off trade between the two countries and hit Ireland’s economic recovery. Rebranding Dublin as a financial hub would help – but requires Germany to beef up the euro zone’s half-done banking union.
Johnson-Tyco inversion is insured against politics 25 Jan 2016 U.S. building-controls maker Johnson Controls’ $16 bln purchase of Ireland-domiciled Tyco risks becoming a target for critics of tax-reducing deals. But with an expected $500 mln of yearly savings and a low 11 pct premium for Tyco’s owners, tax savings are gravy, not meat.