DUBLIN (Reuters) – Ireland has leapfrogged the Bahamas to become the world’s ninth most significant tax haven, according to a ranking by pressure group the Tax Justice Network, which campaigns for tax transparency.
Ireland first appearance in the global top ten puts it alongside countries such as the British Virgin Islands, which tops the list, and the Netherlands, having edged up from eleventh place in the previous report in 2021.
The study measures the amount of corporate financial activity in countries, including money flows, as well as transparency and tax schemes on offer, assigning a points-based ranking.
The Tax Justice Network is highly critical of Britain’s overseas territories, such as the Virgin Islands. But it also highlights the growing importance of Ireland.
The list was published shortly after Ireland received $14 billion in back taxes from Apple (NASDAQ:AAPL), after the European Court of Justice said the country’s favourable tax treatment of the iPhone maker had been unlawful.
A spokesperson for Ireland’s Department of Finance said Ireland was not a tax haven and that it had taken steps to tackle aggressive tax planning by reforming its tax code and that it supported international tax reform.
Nessa Ni Chasaide of Ireland’s Maynooth University said Dublin had responded to criticism by changing rather than dropping favourable tax schemes, allowing international companies write off the value of intellectual property against profits to pay less tax.
“Ireland plays global tax games in a very sophisticated way,” she said. “Every time it comes under pressure, it has a new game. Ireland is laughing all the way to the bank.”
Corporate tax revenues have exploded in Ireland over the last decade, jumping from 4.4 billion euros in 2015 to an expected 29.5 billion euros this year, not including the Apple windfall.
The receipts, mainly paid by a handful of U.S. multinationals, now make up 28% of all tax collected in Ireland each year, propelling its public finances to becoming the strongest in Europe.
Source: Economy - investing.com
