The EU has its eyes on Irish tax revenue

Is the EU about to attempt to plunder Ireland’s tax revenues? Over the last decade or two, Ireland has done incredibly well, transitioning from where they were to where they are now. It serves as a model of enterprise and initiative. They were very wise to introduce a very low corporate tax rate of 12.5% for offshore companies, which attracted some of the largest companies in the world to base themselves in Ireland, bringing the country much-needed tax revenue merely for hosting them without providing anything in return.

However, there is always a price for everything. When large offshore corporations establish a substantial presence in a small population and overall economy, it can distort the figures. If you were to look up Ireland’s GDP figures, they appear incredible, and the GDP per capita is one of the highest globally, with exceptions like Monaco and similar places. But all is not as it seems. As the saying goes, there are “lies, damn lies, and statistics,” and there is no greater fiscal lie than GDP.

Within GDP figures, government borrowing used for investment in a country is included. In Ireland’s case, where offshore corporations operate, their turnover is included in Ireland’s GDP. When divided up to calculate GDP per capita, it may seem like the average citizen of the Republic of Ireland enjoys a lifestyle similar to that of a citizen of Kuwait. However, this is far from the truth.

These offshore corporations have skewed the figures and created a bubble within the economy. They function as separate entities, having their own team of skilled workers that they bring in, impacting local housing. Many may recall the scenes of long queues for rental properties in Dublin a few months ago. Life for the average citizen has become even more challenging due to these distortions.

Now, it may become even harder as the EU is showing interest in Ireland’s tax revenue. Despite the narrative, the EU is struggling to fund itself, exacerbated since the departure of the UK. They miss the UK’s contribution, and their relative position on the world stage is diminishing rapidly. In 2018, with the UK, the EU represented 22% of global GDP. Without the UK, it dropped to 16.5%, and this year it has fallen to around 15%, with Germany facing recession, which may push it below 15%. They are on course to represent no more than 10% of global GDP by the end of the decade. Hence, the EU is looking to expand and potentially exploit the wealth of other countries directly or indirectly.

Regarding Ireland, the EU is pressuring the country to increase its corporate tax rate to 15%, an internationally agreed figure to prevent any country from having an unfair advantage. However, the speaker suggests that rules are often created to maintain an advantageous position and prevent others from changing the odds.

The speaker believes that Ireland should have the autonomy to decide its own tax rates for offshore companies. These decisions should be made internally by the government of the Republic of Ireland, without interference from the EU or the IMF. Another threat looming is the EU considering imposing a 0.5% levy on revenue from offshore companies in Ireland, which the speaker views as little more than theft.

In conclusion, the speaker hopes that Ireland can continue its progress without external interference. They believe that Ireland has come a long way, but there is still work to be done to ensure that everyday citizens benefit from the economic growth and are not left behind. The speaker also expresses dissatisfaction with the EU’s actions and decisions, emphasizing the importance of national sovereignty.

As for the UK, the speaker sees it as evidence supporting the decision to leave the EU and believes that they should have done so more abruptly, without allowing external influences to undermine their economy.