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Article

28 Feb 2017

Author:
Oxfam Ireland

Corporations continue to shift billions in profit to and through Ireland to avoid tax

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Government measures aimed at tackling tax avoidance are falling short as tens of billions of euro of corporate profits continue to be shifted to and through Ireland each year to avail of Ireland’s lax tax system...Mantras and Myths: A True Picture of the Corporate Tax System in Ireland, says Ireland’s extensive network of legal double taxation agreements could allow companies to continue to route profits to low tax jurisdictions beyond the 2020 end date of the ‘Double Irish’ loophole...The report highlights the potential negative impact of Ireland’s corporate tax system on developing countries and how its lack of full transparency leaves them and the Irish public in the dark about where companies make their profits and pay tax. Despite recent changes to Ireland’s double taxation treaties with developing countries, most contain no anti-abuse provisions aimed at preventing tax avoidance...“The European Commission’s Apple ruling provided a rare glimpse into a secretive world.  It showed that Apple routed two-thirds of its profits on global sales, including in Africa, through Ireland, resulting in no tax accruing to relevant developing countries..."