Ireland pushes for 'compromise' on minimum global corporate tax
In the wake of G7 countries agreeing on a global minimum tax rate to stop major organizations like Apple from moving cash across borders to minimize tax payments, Ireland is apparently seeking a "compromise" on the plan.
On June 5, finance ministers from the G7 group of nations agreed to shut down tax loopholes and to try and cut down efforts by multinationals to reduce their tax payments, by pledging to a minimum global corporation tax rate of 15%. The group also agreed to introduce measures to ensure taxes are appropriately paid in countries where the firms operate.
In an interview with CNBC on Friday, Irish Finance Minister Paschal Donohoe hinted the country will push back against the plan, which is now being discussed at the OECD level, and soon by G20 leaders.
"What we are going to do is engage in the OECD process very intensely across the coming weeks and months, and I do hope an agreement can be reached that does recognize the role of legitimate tax competition for smaller and medium-sized economies," said Donohoe. "I do believe it is in the interest of everybody to find a compromise."
The pushback from Ireland is induced by it being the home of major corporations such as Apple and Google, which have taken residence in the country partly because of its low corporation tax rates. With a globally-agreed minimum corporate tax rate, this would eliminate favorable tax terms as a benefit that Ireland could offer to companies to stay.
In the case of Apple, such levels were deemed illegally low by the European Commission, ordering Apple to repay 13 billion euros ($15.5 billion) in back taxes. While the second-highest EU court favored Apple and Ireland in 2020, the EU said in February it would appeal the decision.
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On June 5, finance ministers from the G7 group of nations agreed to shut down tax loopholes and to try and cut down efforts by multinationals to reduce their tax payments, by pledging to a minimum global corporation tax rate of 15%. The group also agreed to introduce measures to ensure taxes are appropriately paid in countries where the firms operate.
In an interview with CNBC on Friday, Irish Finance Minister Paschal Donohoe hinted the country will push back against the plan, which is now being discussed at the OECD level, and soon by G20 leaders.
"What we are going to do is engage in the OECD process very intensely across the coming weeks and months, and I do hope an agreement can be reached that does recognize the role of legitimate tax competition for smaller and medium-sized economies," said Donohoe. "I do believe it is in the interest of everybody to find a compromise."
The pushback from Ireland is induced by it being the home of major corporations such as Apple and Google, which have taken residence in the country partly because of its low corporation tax rates. With a globally-agreed minimum corporate tax rate, this would eliminate favorable tax terms as a benefit that Ireland could offer to companies to stay.
In the case of Apple, such levels were deemed illegally low by the European Commission, ordering Apple to repay 13 billion euros ($15.5 billion) in back taxes. While the second-highest EU court favored Apple and Ireland in 2020, the EU said in February it would appeal the decision.
Keep up with everything Apple in the weekly AppleInsider Podcast -- and get a fast news update from AppleInsider Daily. Just say, "Hey, Siri," to your HomePod mini and ask for these podcasts, and our latest HomeKit Insider episode too.If you want an ad-free main AppleInsider Podcast experience, you can support the AppleInsider podcast by subscribing for $5 per month through Apple's Podcasts app, or via Patreon if you prefer any other podcast player.AppleInsider is also bringing you the best Apple-related deals for Amazon Prime Day 2021. There are bargains before, during, and even after Prime Day on June 21 and 22 -- with every deal at your fingertips throughout the event.
Comments
Considering Cook is apparently all about equality, isn't it odd how he is one of the only major tech CEOs not to comment on how he supports a global minimum tax? Even Google, Facebook and Amazon said they supported the goals. Could it be that Cook's modus operandi is maximum profit over anything else, and "equality" is just a woke marketing buzzword to him? Certainly seems that way with his continued bending over for the Chinese government.
If one reads enough posts on a forum then they will always find inane nonsense like this. Yes, news reported Google commented on tax policy and they didn't say Apple commented. Google good! Apple bad!
Thanks for your swell insight. Please go on over to Google/Android Good! board and help raise the posting here by much more than 15%
Maybe I'm being optimistic, but this development on the face of it seems to be the best thing to happen in international taxation in a long time.