This week, the Fine Gael Leader and Tanaiste Leo Varadkar defended Ireland’s 12.5% corporation tax rate saying the proposals were not just about “tax justice” but about “big countries trying to get a bigger share of the pie” report MSN.
Ireland has a lower than usual corporation tax rate at 12.% however the US President, Joe Biden wants a global minimum corporate tax rate of 15% to discourage companies to shop around for the most favourable corporate tax rates.
Biden’s project is backed by 130 countries wordwide, including the G20 and the EU, but Ireland is seeking to maintain its 12.5% rate.
Nine countries that did not sign up to the plan including the corporate low-tax EU members Ireland, Estonia and Hungary as well as Peru, Barbados, Saint Vincent and the Grenadines, Sri Lanka, Nigeria and Kenya.
According to iMore, Apple has long made a habit of moving money from European sales through Ireland due to its relatively low tax rate.
A minimum global tax rate of 15% could see things shaken up. Apple moved £720 million (€842 million) out of its UK businesses and into their Irish holding company as dividends across two payments made throughout 2020, according to a new report based on published accounts.
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