Jump to content
House Price Crash Forum
Sign in to follow this  
oldsport

A E P Says Ireland Will Be Ok After All

Recommended Posts

http://www.telegraph.co.uk/finance/economics/8049212/The-hi-tech-miracle-rescuing-Ireland-from-a-banking-crisis.html

July’s trade surplus of €4.48bn (£3.92bn) was almost double that of the same month two years ago (€2.62bn), even though Dell Computers has since decamped to Poland for cheaper labour.

Dell’s exit seemed traumatic at the time but it is becoming ever clearer that Ireland no longer needs such low-end assembly work. The Celtic Tiger has moved on, as you learn quickly in the hi-tech hub of Galway, home of the “semantic web”, the next internet revolution.

Whatever bond spreads of Irish debt seem to say from one day to the next, there is little doubt that this hub of global companies can pull the country out of its tailspin and contain the cancer of Anglo Irish Bank.

Anyone agree

Also, in a post on here a few days ago someone seemed to be saying something along the lines that a lot of either Irish exports or company profits weren't really from ireland but were just being attributed to Ireland becuase of favourable tax rates. I didn't understand it. Could someone explain it for me again, ta

Edited by oldsport

Share this post


Link to post
Share on other sites

Also, in a post on here a few days ago someone seemed to be saying something along the lines that a lot of either Irish exports or company profits weren't really from ireland but were just being attributed to Ireland becuase of favourable tax rates. I didn't understand it. Could someone explain it for me again, ta

You're Microsoft. You sell £1bn of software to the UK (25% tax) every year. It costs £100m to make in the US (25% tax) so there is a £900m profit to be accounted for somewhere.

In comes Ireland (0% tax):

1. MS US sells software to MS Ireland at £100m: MS US makes £0 profit, so untaxed.

2. MS Ireland sells software to MS UK for £1bn: MS Ireland makes £900 profit untaxed.

3. MS UK then sells software for £1bn: MS UK makes £0 profit, so untaxed.

Ireland has a £900m trade surplus and the Irish corporate sector generates £900m in profit.

Oh the wonders of technology...

P.S. Not so long ago this was illegal as it is tax evasion. But now that corporations control our democracies it's OK we don't mind.

Share this post


Link to post
Share on other sites

You're Microsoft. You sell £1bn of software to the UK (25% tax) every year. It costs £100m to make in the US (25% tax) so there is a £900m profit to be accounted for somewhere.

In comes Ireland (0% tax):

1. MS US sells software to MS Ireland at £100m: MS US makes £0 profit, so untaxed.

2. MS Ireland sells software to MS UK for £1bn: MS Ireland makes £900 profit untaxed.

3. MS UK then sells software for £1bn: MS UK makes £0 profit, so untaxed.

Ireland has a £900m trade surplus and the Irish corporate sector generates £900m in profit.

Oh the wonders of technology...

P.S. Not so long ago this was illegal as it is tax evasion. But now that corporations control our democracies it's OK we don't mind.

thanks, great explanation

do we know to what extent this happens in the Irish figures, I think someone mentioend 60% but that seems awfully high?

Edited by oldsport

Share this post


Link to post
Share on other sites

http://www.telegraph...ing-crisis.html

Anyone agree

Also, in a post on here a few days ago someone seemed to be saying something along the lines that a lot of either Irish exports or company profits weren't really from ireland but were just being attributed to Ireland becuase of favourable tax rates. I didn't understand it. Could someone explain it for me again, ta

Clearly a puff piece, but with interesting details. Apart from the emphasis on production and innovation, this is the most important:

Dublin has fallen from being the world’s sixth most expensive city to 33rd.

That's what a HPC can do. The US has also allowed this (despite their best efforts!), which is why I reckon they'll be OK in the end. Painful at the time, but it can have long term benefit.

I do not know if Ireland is buggered. I do know that the Irish I stay in touch with have not really suffered so far - no redundancies, no margin calls on debt. And that's from a very broad sample - D4 to Ballygobackward.

Share this post


Link to post
Share on other sites

I do not know if Ireland is buggered. I do know that the Irish I stay in touch with have not really suffered so far - no redundancies, no margin calls on debt. And that's from a very broad sample - D4 to Ballygobackward.

Ireland have gone about public sector austerity a different way, I think, opting for large pay cuts rather than redundancies

It'll be interetsing to see which works best

Share this post


Link to post
Share on other sites

thanks, great explanation

do we know to what extent this happens in the Irish figures, I think someone mentioend 60% but that seems awfully high?

I have no idea but I know Ireland changed its tax regime to facilitate this sort of thing.

Share this post


Link to post
Share on other sites

You're Microsoft. You sell £1bn of software to the UK (25% tax) every year. It costs £100m to make in the US (25% tax) so there is a £900m profit to be accounted for somewhere.

In comes Ireland (0% tax):

1. MS US sells software to MS Ireland at £100m: MS US makes £0 profit, so untaxed.

2. MS Ireland sells software to MS UK for £1bn: MS Ireland makes £900 profit untaxed.

3. MS UK then sells software for £1bn: MS UK makes £0 profit, so untaxed.

Ireland has a £900m trade surplus and the Irish corporate sector generates £900m in profit.

Oh the wonders of technology...

P.S. Not so long ago this was illegal as it is tax evasion. But now that corporations control our democracies it's OK we don't mind.

That sounds like it has the seeds of a Gordo style economic miracle - the virtual reality kind.

Share this post


Link to post
Share on other sites

thanks, great explanation

do we know to what extent this happens in the Irish figures, I think someone mentioend 60% but that seems awfully high?

Professionally, I have moved about £6.5Bn of corporate turnover to Irish tax residency. And about £550M of profits.... - by adapting the group structure to have an Irish tax resident parent company.....

Share this post


Link to post
Share on other sites

Agree with the argument lower house prices will really help them in the long run.

Another thing is Ireland had an amazing policy and it was if you had a PHD from any respected university in the world you were auto given citizenship.

So say I am building an advanced medical devices company as mentioned in the article, I can hire geniuses from around the world, and have them at one location.

Edited by aa3

Share this post


Link to post
Share on other sites

Another thing is Ireland had an amazing policy and it was if you had a PHD from any respected university in the world you were auto given citizenship.

They are trying to live down their scientifically proven reputation of being "thick"! :huh: ?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.