Irish government will not hold inquiry into Apple tax practices

An Irish parliamentary committee has voted against hauling in representatives from Google and Apple to answer for their tax affairs in the country, after the firms were accused of using Ireland as a base for their aggressive tax planning.

Good, they shouldn’t. Ireland is offering Apple—and other companies—lower taxes so they will move operations there. That’s smart business for any country. It’s up to all the other countries to ask themselves why they are taxing so much.

  • S

    Because they have schools, courts or hospitals to run for instance ?

    It’s not like Ireland just lowered its business taxes, attracted some businesses as a result and managed to make do through higher personal taxes, more efficient government or whatnot. They actually allow companies to channel revenue and profits from elsewhere through Ireland and – not having to contribute to any education or infrastructure cost involved with those businesses – take a lower cut on these.

    Worst, they allow most companies to basically eschew any taxation if they send money to some tax heaven.

    I’m not saying Ireland is not acting to preserve its best interest: they earn a fraction of gigantic sums their IRS couldn’t dream of seeing organically taxed in Ireland. But they definitely are being dicks.

  • abdoradus

    Big, internationally operating companies don’t move operations to where the taxes are low. They use accounting tricks to move the profits. Recently there was a story about Starbucks reporting a loss in the UK and thus not paying tax there. They can do that because their UK subsidy overpays for the coffee beans and pays horrendous licence fees for using the brand to a shell company in Switzerland.

  • rejmesser

    This is bogus. Corporate politicians are continuing to play city against city, state against state, and country against country. In the name of “free trade” they are gutting economies.

    What happens when citizens of every country can no longer support a public government?

    Will corporate government do better than the feudal lords of the European dark ages?

    Or will the whole world “owe their soul to the company store” like the wage slaves of early twentieth century U.S.A.?