| Dissertation |
Thesis (M.Sc.) --NUI, 2012 at Department of Accounting, Finance and Information Systems, UCC. |
| Summary |
Over the past number of years, the Republic of Ireland has slipped into the worst recession in our country’s history. We have reached a critical stage with very high levels of unemployment and European Union bailouts, etc. So, we must endeavour to do all we can to protect and help our economy. To that end, Foreign Direct Investment (FDI) and our economic survival and recovery are intertwined, and we must do all we can to ensure we retain it. The importance of Foreign Direct Investment to the Republic of Ireland is illustrated alone by the fact that over 600 United States companies have established Irish bases and employ over 100,000 people . In total, worldwide Foreign Direct Investment employs more than 268,000 people in the Republic of Ireland. Despite our generous Corporation Tax regime, they handed over more than €3 billion in Corporation Tax in 2010 . FDI Companies account for over 90% of our exports (the only sector of our economy that is growing), as the past windfalls from the construction boom went on overseas property rather than nurturing Irish exporting enterprises . We must realise however, that the 12.5% Corporation Tax rate is only one of the Republic of Ireland’s constellation of incentives used to attract Foreign Direct Investment; others include legislation on Holding Companies, Double Taxation Agreements and Research & Development Tax Credits. So, when all these elements are combined, they paint a very attractive picture of the Republic of Ireland as a base, notably for the management of Intellectual Property (e.g. Google in Dublin), as well as manufacturing and service operations to access the European Markets. Essentially, as it stands, Irish Corporation Tax legislation allows the profits of Irish Companies on all of their European branches to be taxed in the Republic of Ireland at 12.5%. If the Republic of Ireland were to raise its Corporation Tax rate to European levels, Corporation Tax revenue would rise in the short term as most manufacturing and service operations are relatively inert. However, the situation is very different in regard to holding companies involved in Intellectual Property management, and other intra-firm financial services. Intellectual Property can simply be relocated to other jurisdictions, using buy-in payments. Also, companies involved in software design and technology would find it easy to relocate to other European jurisdictions without a great deal of cost or disruption. |
| Subject |
Corporations -- Taxation.
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Corporations -- Taxation -- Ireland.
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| Collection |
Theses Masters (Research)
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Theses Accounting Finance and Information Systems Department
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| Description |
85 p. ; 30 cm. |
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