Sumary of Multinationals ‘fast-tracking revenue’ to pay tax liabilities ‘on today’s terms’, DEW hears:
- Several large multinationals operating in Ireland are understood to be fast-tracking revenue from future years in order to pay their corporation tax liabilities “on today’s terms”, economist Colm McCarthy told the Dublin Economics Workshop (Dew) on Wednesday.
- Mr McCarthy said the companies, which are said to include banks in the Irish Financial Services Centre (IFSC) in Dublin, had the capacity to accelerate revenue from future years by getting customers and clients to pre-pay in advance.
- This would allow them avoid possible changes to the global tax system coming on foot of the Organisation for Economic Co-operation and Development (OECD) agreement which proposes a corporate tax rate for big companies of at least 15 per cent.
- “I wonder if the authorities are fully alert to this because it means there could be a weakness in corporation tax revenue in the years ahead even if there’s no change in the worldwide corporation tax regime,” Mr McCarthy said.
- ‘Poor value for taxpayers’ Mr McCarthy was contributing to a debate on the future of public services in the wake of Covid-19 at the workshop’s annual conference.
- Mr McCarthy highlighted what he described as three “extraordinary debacles” to do with capital spending in the past two years: the National Broadband Plan;