Arab Today, arab today ireland closes tax loophole as unveils postausterity budget
Last Updated : GMT 04:33:22
Arab Today, arab today
Arab Today, arab today

Ireland closes tax loophole as unveils post-austerity budget

Arab Today, arab today

Arab Today, arab today Ireland closes tax loophole as unveils post-austerity budget

the Irish Government building including the Irish Prime Minister's office in Dublin, Ireland
London - AFP

Ireland pledged Tuesday to close a corporate tax loophole that has brought it under the international spotlight as it unveiled a budget that ends a cycle of austerity cuts.
Finance Minister Michael Noonan told parliament that the "Double Irish" system, which allows multinationals to transfer profits to tax havens, would be abolished next year for new companies, and by 2020 for existing users of the scheme.
"I am abolishing the ability of companies to use the Double Irish by changing our residency rules. All companies in Ireland must be also tax resident in Ireland."
The move comes after the European Commission opened an investigation on Ireland's tax deal with US tech giant Apple although the arrangement in question there is not the "Double Irish".
Europe's Commissioner for Taxation Algirdas Semeta welcomed the change, which still has to be approved by parliament.
"The European Commission has to look at the detail and how it will work in practice but the intention is very good," he said.
"It also explains how it's important to push the agenda to fight against tax fraud and avoidance as high as possible."
Ireland has successfully attracted many multinationals thanks to its low 12.5 percent corporate tax rate, but has come under scrutiny for arrangements that in companies in effect pay much less.
As he announced the corporate tax reform, Noonan said Dublin would work to enhance Ireland’s attractiveness to multinationals, who employ over 160,000 people in over 1,000 companies.
- 'End of budgetary austerity' -The announcement on the tax loophole came as the government unveiled its first post-austerity budget since the country nearly went bust four years ago.
Ireland entered a massive European Union and International Monetary Fund rescue programme in 2010 after expensive bank bailouts, a property market collapse and ravaged tax incomes.
Since 2008, Ireland has taken 30 billion euros ($38 billion) in spending cuts and tax hikes, an adjustment worth roughly a fifth of gross domestic product (GDP).
But the coalition government said Tuesday the 2015 spending plan marks "the end of budgetary austerity."
The 2015 budget "is about securing the recovery, building for the future and broadening it to families across the country,"Noonan told lawmakers.
Noonan said the department of finance was economic growth this year of 4.7 percent, 3.9 percent in 2015 and 3.4 percent in 2016-2018.
He also said the budget measures would reduce the deficit next year to 2.7 percent of GDP next year, well within the EU’s 3.0 percent target.
Despite that deficit, Noonan announced cuts to income tax rates and thresholds.
The top rate of tax will be cut from 41 percent to 40 percent while the point at which taxpayers enter that rate rose by 1,000 euros to 33,800 euros.
There are also changes to the Universal Social Charge (USC), a tax introduced in 2011 that has proven very unpopular, reducing the rate for some lower earners.
"These changes enhance the progressivity of our income tax system with the top 1.0 percent of income earners now paying 21 percent of all income tax and USC collected.
"In contrast, the bottom 76 percent of income earners will pay 20 percent of the total," he added.
The price of 20 cigarettes will increase by 40 euro cents at midnight to over 10 euros a pack.
But opposition finance spokesperson from the Fianna Fail party, Michael McGrath, said Noonan had "made a mess of it."
"This budget is all about using borrowed money to buy votes," he told parliament.
- 'Travelled the long road' -Among the budget increases, Minister for spending, Brendan Howlin, announced additional funding for new teachers, police and the arts and said that a public sector hiring freeze would be removed starting next year.
He also unveiled an increase in child benefits of 5 euros per month and a partial return of the welfare Christmas bonus, the first social welfare increases since 2009.
Howlin also said 2.2 billion euros in funding would be made available to tackle Ireland's social housing waiting lists over the next three years.
But the ministers warned that the recovery was not certain and urged caution.
"We have travelled the long road and are now at a very important crossroads," said Noonan.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ireland closes tax loophole as unveils postausterity budget Arab Today, arab today ireland closes tax loophole as unveils postausterity budget

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ireland closes tax loophole as unveils postausterity budget Arab Today, arab today ireland closes tax loophole as unveils postausterity budget

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Malaysia Airlines picks new CEO

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday