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THE IRISH AMBASSADOR to Brazil is looking to meet up with the Brazilian Revenue service after the South American country branded Ireland a tax haven.
The Department of Federal Revenue of Brazil has announced that it is adding Ireland, Austria, Curaçao and Saint Martin to its list of countries denominated as tax havens.
The change is set to come into effect on 1 October.
Irish officials have hit back at the decision, with a spokeswoman for the Department of Finance saying that it “strongly refutes any allegations that we are a tax haven”.
Other jurisdictions on the list include notorious tax havens such as Panama, Monaco and the Isle of Man.
The category that Ireland is in includes countries that have no tax, hide banking or trade information or have a corporate income tax rate of less than 20%.
Companies listed in Ireland will now have to pay a 25% tax rate on deals with businesses from Brazil instead of a 15% rate that they were previously subjected to.
Sinn Féin MEP Matt Carthy said that the move will likely hit trade between the two countries.
Brazil is one of the largest economies in the world and this move will have serious consequences for our trade with the state,” he said.
“The Irish government urgently needs to take action on remaining tax avoidance schemes in light of Brazil’s decision.”
Surprise
A spokeswoman for the Department of Finance said that it had “come as a surprise” to learn that Ireland is set to be included on the tax blacklist.
“Ireland strongly refutes any allegations that we are a tax haven. Ireland does not meet any of the international standards for being considered a tax haven,” she said.
“Ireland is fully compliant with all international best practices in the areas of tax transparency and exchange of information (and) has not been and will never will be a brass-plate location.
“We only have and want real substantive FDI, the kind that brings real jobs and investment into Ireland. Ireland is an active participant in global work to reform the international corporate tax system.
She added: “Our ambassador in Brazil is seeking a meeting with the Brazilian Revenue service as soon as possible to seek Ireland’s removal from this list.”
Airlines hit
The move has already provoked fury among several Brazilian companies, particularly those in the airline industry.
Ireland is one of the largest aviation leasing hubs in the world with many leasing companies basing their headquarters here, a factor that likely skewed Ireland’s GDP figures last year.
Airline companies from Brazil will now likely have to pay more if they lease aircraft from companies based in Ireland.
The Bloomberg news service reports that Eduardo Sanovicz, president of the Brazilian Association of Airlines, said that the measure will have “a devastating impact on the airlines”.
55% to 60% of their fleet, some 300 planes, are leased in Ireland, he said.
The move comes a little over a month after Brazilian multinational JBS, the world’s biggest meatpacking company, announced restructuring plans that will see it shift €30 billion worth of its assets to a new Irish entity.
It also comes as Ireland’s tax system falls under increased international scrutiny in the wake of the EU decision to order US tech giant Apple to pay the Irish state €13 billion in taxes.
Written by Paul O’Donoghue and posted on Fora.ie
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Ireland is a tax haven. Same as Caymans islands etc. The state allowed Apple to set up dummy companies to funnel profits back to the U.S. No tax paid on sales in Europe except the small amount for Irish sales. What are they complaing about ? Classic tax haven operation…
@John Bathe: If Europe didn’t want to tax the sales in other countries then that’s their business.
That they failed to do so doesn’t mean they can just impose a retrospective moneygrab on Ireland.
How weak our Leftie Loonies are that the moment Europe demands we collect baseless taxes on businesses opeating within our own borders that they are yelping to submit.
@alpha. My politics is generally middle of the road. My views on crime are very right wing for example. I’m just saying its true. Apple by passed tax in Europe using Irish laws… Whether that’s good or bad each person can decide. Whether other European countries chase us or Apple for tax is a legal issue nothing else. It has benefited us in terms of jobs but it may bite us in the likes of Brazil or other countries chasing us for tax thru the courts. Also serious trouble iSamsung decide to sue the Irish state on discriminatory / competition grounds… Not exactly leftie stuff ??? Just shouting “Leftie” at me… I am no such thing…
The truth hurts
If Carlsberg did tax havens they would allow corporate vultures to masquerade as charities to avoid any tax as they looted the country. Probably the best little tax haven in the world.
Ireland is such a corrupt country, it’s not funny anymore. Deals are done between ministers, developers, Nama and foreign investments at a cost to the tax payer. Dobs buddy is allowed to be a minister in Tipperary who still has support from Enda and FG.
That comment makes no sense, either factually or grammatically.
Ireland is one HUGE glasshouse and here we are throwing stones,big ones lol.
If their kids in Brazil want to get fake student visas to stay in Ireland (EU) and then overstay illegally which our government turns a complete blind eye to then they better remove us from their list of deplorables fairly lively. There’s only one country to learn english immersively that will be in the EU from now on so that should soften their cough.
Over half of the worlds leased aircraft are registered in Ireland.
Is that because of the expertise of a nation that never so much as built a toilet seat for an aeroplane.
Or is it because we are a tax haven?
A banana republic calling us a tax haven, the cheek!
@James Darby: Brasil is hardly a banana republic. It’s the next economic superpower, provided it can get its shit together.
I reckon they grow a lot of bananas.
@James Darby: you have never been to Brazil then.
Sean, Brazil is one of the most corrupt and unequal societies on earth.
Look at the continued damage the greedy establishment is doing to the country. Benefits for them nothing for ordinary folks.
@Roger Clarke: expect for the massive number of jobs the ordinary folks have due to MNCs operating here.
what specific benefits are the establishment getting?
Highest political salaries in the world, places on boards of companies like Topaz due to questionable relationships with companies or public figures, multiple pensions each based off of salary from (again) highest political salaries in the world. Brown envelopes and bribes, all expenses paid, longer holidays than even third level students, reduced taxation on their multiple properties, highly paid public sector positions for their own friends and family members. More protection from gardai than any regular citizen can expect, no investigation into their own actions even if highly circumspect, less time spent on waiting lists for crucial operations for themselves and their family members, the ability to make laws while under the influence of alcohol where you or I cannot enter into a legal contract if we are, the actual ability to drink alcohol at work and at reduced costs. That’s all I can think of off the top of my head, others may feel free to add more.
Talking about Brazil Roger?
The Brazilians might be shooting themselves in the foot with regards the airline industry .That one could hit there own economy. It’s hard enough to lease one aircraft that is not in some way connected to Ireland never mind 300, good luck.
Great to see the Socialists out in force applauding the Brazilian decision that will cost jobs in Ireland.
Typical shortsightedness, and thirst to attack the country from within.
Why don’t you move to a Socialist economy that you respect, like North Korea or Russia? You’ll be happy there, wallowing in Socialist dysfunction..
Creating jobs and employment doesn’t mean we have to break rules or the law.We have opinions in this democratic country of ours(in which i was born and pay taxes)I have a democratic right to voice my opinion if i see fit to challenge any wrong decisions that our elected governments make.Unlike Russian or North Koreans.Also i would consider my opinion as my personal view rather than an attack(very harsh words).
Controlling our own tax policy is not breaking any law.
What’s their opinion on Switzerland?
Switzerland is not in the EU and is answerable to nobody.
We are part of a common market.
Tom you didn’t answer the question she asked
So who we blame Pat Hickey IOC trying to rob Brazil They hit us economically
have your say