Mick Wallace (Wexford, Independent) | Oireachtas source

This is almost the same subject matter as that of the last question. The Minister is probably familiar with research conducted by Mr. Colm Keena. In The Irish Times last week, he showed that Microsoft reduced its US tax bill by more than €1.8 billion in 2011 by using Irish subsidiaries. The company has two branches in this country. Microsoft Ireland Operations Limited, which employs 650 people, showed a profit of $2.2 billion and paid an effective tax rate of 7.3%, amounting to $3.3 million per employee. Microsoft Ireland Research, which has 390 employees in Ireland, had a profit of $4.3 billion on which it paid an effective tax rate of 7.2%, amounting to $11 million per employee. According to Dr. Sheila Killian of Limerick, "[I]t is tempting for multinational firms which have a subsidiary there, and another in a high-tax country to use aggressive transfer pricing practices to shift income into Ireland, where it will face a lower rate of tax". THis makes Ireland a tax haven.

Problems are coming down the tracks. I do not know whether the Minister has time for bedtime reading, but a new book, entitled The Betrayal of the American Dream, makes for powerful reading. The situation will not stay the same. America is running into serious problems because of its tax laws. The Minister is correct, in that America will need to change its laws to stop significant tax avoidance. He pointed out that much of what is involved is lawful. I will quote from the book-----

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