alt Hacker NewsI wonder how long this tax revenue will last, I realize this is a one time lump sum, now that the tax advantage for "locating" in Ireland no longer exists.
> The windfall is being banked in two tranches – €8bn this year and the remaining €6.1bn next year – giving the country’s finance department a projected €105bn in tax revenue for 2024.
So this is about 7.6% of their tax revenue for this year and 5.8% of their revenue next year. If AAPL does leave that's a massive loss for the country.
> Combined with the one-off revenue from Apple, the expected corporate tax intake for Ireland is €38bn, half of which comes from the top 10 companies, including the tech companies Microsoft and Intel, and pharma multinationals, such as Pfizer.
Ireland could be facing a massive corporate tax loss if these companies just all up and go to a new European country.
Possible destinations are Luxembourg(Amazon, Fiat Chrylser) and the Netherlands (starbucks)
Replies
> If AAPL does leave that's a massive loss for the country.
Is it, though? AAPL didn‘t pay those taxes before, that‘s exactly the underlying problem, no?
Ireland would lose something for sure, as the operations of AAPL certainly created some kind of money for the country — but not taxes.
> If AAPL does leave that's a massive loss for the country.
This seems... unlikely? Like, the arrangement deemed illegal ended in _2014_; if Apple was going to leave as a result they'd presumably have done so then.
Aren't Luxembourg and Netherlands also in the EU?
Wouldn't the same rules apply?
Not only tax loss but also GDP loss.
https://www.politico.eu/article/ireland-gdp-growth-multinati...
Ireland, like Luxembourg, Singapore, Switzerland and other tax havens have “ghost GDP” - GDP that exists purely because of economic activity recorded as occurring in Ireland due to tax offshoring, but doesn’t actually exist (the economic activity happened in another country, and the money doesn’t end stay in Ireland).
I’ve seen a few attempts at estimating the size and it’s up to 40% of Ireland’s GDP.
If that tax advantage disappears one would expect multinationals to rearrange their affairs and we should see a rapid decrease in Ireland’s GDP over the next few years.