In what could be witnessed as a consequential boost en route to pass a global tax deal, Ireland had agreed to drop its opposition to a potential reform in global taxation rules on Thursday, as the former tax-haven eurozone member state had decided to shrug off its 12.5 per cent tax offer for large multinational businesses.
In point of fact, latest move from Dublin came forth months after the low-tax EU headquarters for blue-whale conglomerates such as Apple, Google alongside Facebook, had fended off an initial submission to a proposed global tax rate of ‘at least’ 15 per cent.
Ireland agrees to shed tax-haven status
Nevertheless, a Government document this week had trimmed the ‘at least’ section, cementing ways for the Country’s parliament to exercise debates on a bill what its previous Government’s had said would never think about, leaving behind a global tax-haven status which had metamorphosized the island country into a global hub for corporates to set off headquarters in bids to evade higher taxations elsewhere while helping gain thousands of jobs over decades.
Meanwhile, adding that the decision to join an existing global pact to reach a global tax reform deal would be the right one, Ireland’s Finance Minister Paschal Donohoe said in a press conference, “Joining this agreement is an important decision for the next stage of Ireland’s industrial policy - a decision that will ensure that Ireland is part of the solution.
This is a difficult and complex decision but I believe it is the right one”. Almost all but a few of 140 member countries of OECD (Organization for Economic Co-operation and Development) had already signed up in to a July accord aimed at setting out a global tax rate of 15.0 per cent for multinational business groups.