The Irish Examiner has reported that:
Huge revisions to Irish GDP levels that led to “leprechaun economics” claims earlier this year were almost completely caused by Apple re-arranging its tax affairs after the Government closed off tax loopholes.
Economic analysts revealed the situation last night saying the move led to the multinational giant shifting more of its intellectual property into Ireland, resulting in the firm paying out substantially more in corporation taxes to this country.
It has to be said that the Irish government has not yet confirmed this to be the case, but it seems entirely plausible and also explains the big rise in Irish corporation tax receipts. In the circumstances is it any surprise that the Dail voted to reject €13 billion of tax yesterday? Here is the ultimate captured state, so dependent on one company that its politicians are unable to differentiate the interests of its people from the company that can swing its fortunes in the way. This was not, I am sure, the outcome Steve Jobs could have ever imagined in 1980. But I have little doubt Tim Cooks understands it all too well.
The question is an obvious one. In case such as this where do the interests of the state end and the company begin? No wonder the Tax Justice Network talks of a finance curse.
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What’s worse? The situation in Westminster, or Dublin? A Westminster government headed by a PM who hasn’t been elected, full of foaming at the mouth nationalists and hard right libertarians, or a pack of politicians who seem to think the interests of Apple are also those of Ireland?
Why do these people want to be in government in the first place if they think the only purpose of government is to serve the interests of business, and nobody else?
Read The Courageous State
I must admit Richard, my question was partly tongue in cheek, since I have a pretty good idea why a lot of these people are in politics; to serve their own, and their corporate masters, interests, certainly not those of their electorate.
Having read The Courageous State a few years ago, I am of course in 100%agreement with you as to the kind of politicians we need.
I have always thought we are on a wavelength
Things are definitely coming to a head in Ireland. There is clearly a lot going on and the people at The Central Statistics Office are almost certainly correct in their 26% GDP calculation – shows how bad GDP is as a measure of real size of economy. Of course the real economy probably grew at about 5-7% last year.
Its not just Apple, there are strange things going on in the medical sector; the inversion deal between Medtronic and Covidien was supposedly worth $48 billion. There has been a vast increase in aircraft leasing run through Ireland particularly since Aercap located there. In pharmaceuticals the clampdown on the “Double Irish” is supposed to also have had a big influence.
On the horizon: World’s biggest meat firm JBS shifts parent company to Ireland
http://www.irishtimes.com/business/agribusiness-and-food/world-s-biggest-meat-firm-jbs-shifts-parent-company-to-state-1.2749551
this has far from being universally welcomed.
Regarding Apple it was a unique fusion between very talented people most importantly Steve Jobs and Jonathan Ive. Jonathan Ive is one of the worlds greatest industrial designers and was responsible for making apple products not just functional but things of beauty. I hoped Ive would become CEO after Steve Jobs died which would signal that Apple might continue on its created route. Tim Cooks signaled to me that the money men had taken over; normally a sign of slow decline.
Apple is an extraordinarily valuable company and last year certainly would have ranked in the G20 in terms of GDP far exceeding that of Ireland. Google has overtaken Apple this year and possibly now two companies worth more than all but the top 20 most valuable states.
Another good article by Fintan O’Toole here http://www.irishtimes.com/opinion/fintan-o-toole-we-will-hurt-only-ourselves-by-appealing-apple-ruling-1.2780302
There are plenty of encouraging signs. One thing Ireland has in its favour is that unlike in England there is a much more balanced press and the Irish populace seems much better informed than the English. I expect big changes for the better over the next few years; accelerated by Brexit.
One of the great advantages of Ireland is people seem to be engaged with politics and have a political system that is beginning to let them reject the status quo
I feel quite optimistic about Ireland. I’ve always been a great supporter of PR and its value hopefully will show over the next few years. I can’t say the same for UK and England in particular. To be honest there has never been a stage in the past 35 years when I have been so pessimistic; both major parties seem totally divided and dysfunctional. This is at time when the greatest challenge since the 2nd world war confronts the country in the form of Brexit.
I agree
It’s profoundly worrying
I have to say Sean, the few Irish people I’ve met certainly have been better informed and more interested in what’s going on than the English; mind you, to be better informed than a lot of my fellow countrymen isn’t very difficult, tbh!
The wretched referendum showed that, in spades. Our rotten, lying press doesn’t help either, of course. Nice to see you’re optimistic about the future in Ireland. I wish I could say the same about the UK. If only I had an Irish grandparent to get that Irish passport……….A greatgrandparent yes, but that’s not going to be good enough.
The diaspora ha its limits, dammit
so dependent on one company that its politicians are unable to differentiate the interests of its people from the company that can swing its fortunes in the way
That’s garbage, Richard. Apple are far from the only players using Ireland as a tax haven (Microsoft, Facebook – why are their data centres in Dublin if it’s not to cheat the taxman? – not to mention Google, Dell and Johnson & Johnson)
But it seems Apple is the biggest
And that, as you say, the malaise is deep seated