Multinationals’ actions belie exodus talk

It has been said that reform of Ireland’s tax regime might lead to an upheaval among multinational tech companies based here.

Although the multinationals themselves never admit it, the rest of the world is more than aware that our tax- friendliness has been quite the attraction.

The European Commission’s deepening inquiry into Apple’s tax scheme in Ireland has increased pressure on the Government for tax reform.

And the Organisation for Economic Co-operation and Development (OECD) is also on our tax case with its Base Erosion and Profit Shifting initiative.

Headlines have warned of a tech exodus and thousands of job losses. It was reported that tech companies could withdraw some elements of their operations in Ireland, or up and leave entirely, if Ireland’s tax regime changed.

The actions of the tech companies themselves seem to contradict this, however, with more of them making bricks and mortar investments here.

Google has spent more than €250 million purchasing four buildings in Grand Canal Dock, which house its EMEA base. Microsoft is to build a "mega-headquarters" in Leopardstown, to accommodate up to 2,000 staff.

Now, LinkedIn has become the latest company to show it is here for the long haul, purchasing a 17,507sq m site at Wilton Place in Dublin. The professional networking giant plans to build a six-storey international headquarters on the site, and will have the capacity to double its workforce from 600 to 1,200. The company is spending circa €90 million on the project.

Having made such a large purchase, and going to the effort of constructing a new headquarters, it doesn’t look like LinkedIn is planning to exit Ireland soon.

The bottom line is while we shouldn’t be complacent about our multinational friends, constant worry over their possible departure isn’t quite merited either, as long as our 12.5 per cent remains in place.