Taxation and shifting profits
Sir, – If Ireland’s trade with the UK takes a battering from Brexit, and Dublin also finds itself making a greater net contribution to the European Union as London’s contribution falls, then there will have to be serious thinking about key trading partners and how to raise additional revenue from taxation.
A fair tax regime is essential in any civilised and equitable society. Businesses and wage earners should pay reasonable levels of tax and should expect in return high standards of health, transport and education. Taxation also enables the vital protection of the public sphere, including the environment.
The warning from Yanis Varoufakis reported by Fintan O’Toole is timely (“Ireland is becoming the tax haven of choice for profit-shifting multinationals”, Analysis, June 16th). Ireland needs to build on its growing reputation as a progressive, liberal and democratic state. Adequate taxation of global corporations is essential.
The current commitment to 12.5 per cent corporation tax – and not even enforcing this in the shameful cases of Apple and Facebook – is an egregious neglect of government responsibility.
It is also unsustainable on every level and damaging to Ireland’s reputation at home and abroad. – Yours, etc,
Dr SIMON SWEENEY,
University of York,