trueeconomics.blogspot.com /September 21, 2016
My column for the Village covering the Apple Tax fiasco:http://villagemagazine.ie/index.php/2016/09/not-the-rate-the-loopholes/
As it says on the ‘tin’ – the problem with Apple Tax is not the rate of corporate taxation set in law in Ireland (the 12.5% ‘red line’ rate), and not tax competition, nor the benign nature of tax exemptions that Ireland bestows on all companies, including the MNCs. The problem is that these competitive aspects of the Irish regime are simply not enough for the likes of Apple, which pursued and obtained access to exemptions that any ordinary company operating in Ireland cannot avail of.
Hence, the red herring of the arguments that the EU Competition ruling is an attack on Irish tax rate. It is, instead, a challenge to the asymmetric preferences granted in the past (and still in use during the ongoing phase-out period) to a handful of MNCs over and above domestic companies.
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