Pariah Apple Pie

September 1, 2016

cartoon-business-man-being-hit-with-extra-taxes-and-carrying-a-money-bag-by-ron-leishman-1322Just listened to Tim Cook, Apple CEO, on Morning Ireland state: while he is in favour of changing and simplifying the tax laws, any retroactive finding against Apple’s tax affairs is politically motivated and unfair.

We’ll look at European Competition Rules shortly to agree or not both Ireland and Apple were in breach of the ruling to provide illegal state aid to Apple by way of a sweet tax deal.

Firstly, by way of an intro lets put away the frequent political canard that FDI investment in Ireland is volatile and at the first whiff of danger Apple and its fellow MNC’s will flee our shores.

We have a relatively stable political climate in Ireland. The island itself is easily defended and safer from foreign terrorists than other countries in Europe. Our climate is cool, conducive to the setup and maintenance of large data centres.

Most MNC’s have worldwide exports and we have airlines. Our population is relatively well-educated though on its present course it is falling behind. Relations between Ireland and parent MNC countries is good.

But Tim Cooke knows the cat is out of the bag. Ireland through its IFSC services has been operating as a tax haven for years offering off the shelf deals with a nod and wink to Enterprise Ireland and FDI has flooded to Ireland to avail of these tax breaks.

Such tax breaks are morally corrupt and illegal and represent unfair advantage given to companies operating in Ireland such as Apple.

I will not delve into but instead point out there is a need to examine the constitutionality of the tax laws that operate in this state Provisional Collection of Taxes Act 1927 (‘the 1927 Act’) and the Irish Constitution. For example. the following paper:

http://www.taxandlegal.ie/ITRSept2009.pdf examines the legality of retrospective collection of taxes eg property taxes.

Be that as it may the sweet deal provided to Apple and how it fundamentally assists in the avoidance of fair taxes locally and for example in MNC parent countries eg USA needs examination as to whether such practices a=) contravene the rights to fair collection of taxes of the Irish people  as set out in the Irish Constitution b=) contravene the constitutional rights of other taxpayers in other jurisdictions.

This matter has wider implications than those raised by European Competition Authority rules. We are considering here no taxes for the 1% and taxes for the 99%.

The great edifice of international tax rules has been carefully scaffolded  through armies of lobbyists and legal eagles to carefully construct non-payment of taxes by MNC’s.

This scaffolding has been built and funded mainly by those seeking unfair advantage and profitable benefit for the financial interests  they represent. This does not include the interests of taxpayers.

Readers of this blog will know my position supporting IRexit in support of Brexit( see last blog ) and I fundamentally disagree with the Orwellian powers given to TFEU the Treaty on the Functioning of the Union eg:

“Article 3 1.The Union shall have exclusive competence in the following areas:

(a) customs union;

(b) the establishing of the competition rules necessary for the functioning of the internal market;

(c) monetary policy for the Member States whose currency is the euro;

(d) the conservation of marine biological resources under the common fisheries policy;

(e) common commercial policy”

http://ec.europa.eu/competition/antitrust/legislation/handbook_vol_1_en.pdf

Realising how little our politicians know about managing our finances under such rules perhaps aided by our so-called economic management committee excluding such matters from both political and public perusal  it comes as no surprise politicians deliberating on our response to findings against Ireland and Apple should want to defer decision until this coming Friday to give themselves time to inform themselves.

It’s surprising Michael Noonan should wish to squander public money in appealing this long deferred ruling by the European Commission against Ireland. Its surprising compared to the paralysed silence of Irish politicians in objecting to the odious terms of our financial bailout. The IMF had more objection to the terms of our bailout than local politicians. Its surprising given the support of the Irish government for Europe.

But then considering the incompetence involved in such an ill judged decision its of no surprise. The decision will consolidate Ireland’s reputation an an international tax haven pariah.

So I could take the view this is just another example of Michael Noonan’s compliant and obedient servility to the rules of gross incompetent obedience to demands made by shadowy financial sector powers in handling our financial affairs.

On the other hand, I might take the view that the Irish government is slowly waking up to the fact that it is in the belly of a boa constrictor when it comes to Europe. Noonan’s ardour for Europe is dampening somewhat.

See article 3.1.

  1. Europe is flexing its muscle establishing it alone has the right to establish european wide competition rules.
  2. Europe can dictate Ireland’s monetary policy.
  3. Conservation of marine resources…we know what we’ve lost there
  4. Common commercial policy (do the bidding of the large group of financial lobbyists that control the EU)

Basically the sooner Minister Noonan goes the better. His bailout negotiations were a dismal failure culminating in usurious and uxorious repayment terms to Ireland. Only mitigated when it was noticed terms given to Ireland were a lot worse than those negotiated with Portugal and Greece.

Now with the latest Apple debacle he wants to challenge using taxpayers money the finding of approx €13bn underpayment in tax to Ireland in a sweetheart deal that fleeces taxpayers across the world.

http://europa.eu/rapid/press-release_IP-16-2923_en.htm

Mr Noonan instead of bowing to the inevitable is bowing to the dictates of an international tax pariah system fleecing taxpayers across the world, of which he has made the Irish government a lynchpin and tax haven cog.

He has made this country look ridiculous and ludicrous in his efforts to return a potential windfall of €19bn to Apple.

Think of this. Given the level of control of our economy in 3.1 above do we need our large Dáil with all its deputies and the cost of their pensions and salaries with powers given to them that are but toothless window dressing?

We’ve had enough of fiscal rules eg extortionate bailout;  Irish Water served up with homelessness;  extortionate rent serfdom to our young people.

Now the new mission of safe return of €19bn of Irish tax payers money to Apple?

Please support IRexit.

 

Postscript

The Dáil is due to debate the Commission ruling on Apple today 07.09.16. A defence bulwark in support of appealing the decision is the claim that the Revenue deal on Apple was not selective, other companies could avail of this.

Lets leave aside the investigation if this was/is true for other companies operating in Ireland, surely the whole point of the Commission ruling from a competition perspective is that inter alia Ireland being a member of the EU with EU law taking precedent over Ireland’s laws, we are in breach of European Competition rules that affect taxation policy.

It’s ludicrous to propose as a defence the right of Ireland as a sovereign nation to invite companies such as Apple into Ireland with sweetheart deals that put other European nations at a competitive disadvantage.

Over here, over here, don’t waste your tax dollars in other European countries we can recycle your profits so you pay no taxes due anywhere!! If the government doesn’t like these rules it needs to leave the EU and support IRexit as I do.

Otherwise, stop wasting Irish tax revenues on a Fool’s errand that will make us the laughing stock of the world, put us in direct conflict with a ruling supported by 28 EU commissioners and the EU itself. Its asking that we get rubber stamped as a tax haven, a Corporation Tax Global Recycling dump,  to help MNC’s  avoid fair taxes owed to the taxpayers of the world who need healthcare and education politicians are failing to provide.

 

till again

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