G7 taxation proposals vs zero-10

[pongo]

So how much of a big deal do people here think this will be for the island? What are the issues?

[GD4ELI]

1 minute ago, pongo said:

So how much of a big deal do people here think this will be for the island? What are the issues?

Moderately big. It's a very good idea, stops companies in mainly poorer countries hiding profits.

[Banker]

Ireland have already stated that they will not be increasing their corporate tax rate and t will be staying at its low rate for the foreseeable future 

[GD4ELI]

1 minute ago, Banker said:

Ireland have already stated that they will not be increasing their corporate tax rate and t will be staying at its low rate for the foreseeable future 

12.5% is a lot more than 0% though.

[pongo]

1 hour ago, Banker said:

Ireland have already stated that they will not be increasing their corporate tax rate and t will be staying at its low rate for the foreseeable future 

I doubt that realistically, would be a viable option for the Dublin government if the measures were to be adopted. Though there would presumably be some wiggle room around that language - if the measures were phased.

Edited May 29, 2021 by pongo

[Banker]

1 hour ago, pongo said:

I doubt that realistically, would be a viable option for the Dublin government if the measures were to be adopted. Though there would presumably be some wiggle room around that language - if the measures were phased.

Why? Seems pretty certain they won’t now to Biden & neither will lots of countries 

https://www.google.com/amp/s/news.sky.com/story/amp/ireland-rejects-president-bidens-global-corporate-tax-plans-and-will-keep-12-5-rate-finance-minister-tells-sky-news-12316753

[SleepyJoe]

1 hour ago, Banker said:

Why? Seems pretty certain they won’t now to Biden & neither will lots of countries 

https://www.google.com/amp/s/news.sky.com/story/amp/ireland-rejects-president-bidens-global-corporate-tax-plans-and-will-keep-12-5-rate-finance-minister-tells-sky-news-12316753

There was a virtual meeting of G7 finance ministers yesterday to discuss the Biden tax proposals but the only comment has been from Yellen & she didn't even mention the corp tax proposals in name READOUT: Secretary of the Treasury Janet L. Yellen’s Virtual Meeting with G7 Finance Ministers and Central Bank Governors | U.S. Department of the Treasury

[Fluffy123]

1 hour ago, Banker said:

Why? Seems pretty certain they won’t now to Biden & neither will lots of countries 

https://www.google.com/amp/s/news.sky.com/story/amp/ireland-rejects-president-bidens-global-corporate-tax-plans-and-will-keep-12-5-rate-finance-minister-tells-sky-news-12316753

I don’t thing it’s enforceable. I think the real answer to this is substance requirements, FATCA and CRS - which is already in place. 

[pongo]

1 hour ago, Banker said:

Why? 

Because (according to the FT) if the G7 adopts these proposals then there is little doubt that they will effectively be ratified by the OECD and the wider G20.

I cannot seriously imagine many companies wanting to be based in a blacklisted jurisdiction.

Even if the thing is derailed in the short term (perhaps over different countries having different priorities), it seems unlikely that something like this is not on its way sooner or later.

[2112]

HRH The Chief Minister bleating away the corporate tax rates are now a matter for the next administration. They are also the biggest challenge to the next administration.

Why should it be down to the next administration? It’s like kicking the can down the road and off Marine Drive. HRH The Chief Minister is in the same breath pleading for the Coronavirus rules and regulations to be kept in place. He quotes regulations about when the HOK and Tynpotwald can hold their sittings. 
 

I would argue that there is nothing to stop HOK from not addressing the issue of corporate taxation and looking at various scenarios, and if necessary drawing up emergency legislation. Let’s be proactive, perhaps it might bring the island some positive publicity, rather than being forced into doing things.

 

[Derek Flint]

7 hours ago, 2112 said:

HRH The Chief Minister bleating away the corporate tax rates are now a matter for the next administration. They are also the biggest challenge to the next administration.

Why should it be down to the next administration? It’s like kicking the can down the road and off Marine Drive. HRH The Chief Minister is in the same breath pleading for the Coronavirus rules and regulations to be kept in place. He quotes regulations about when the HOK and Tynpotwald can hold their sittings. 
 

I would argue that there is nothing to stop HOK from not addressing the issue of corporate taxation and looking at various scenarios, and if necessary drawing up emergency legislation. Let’s be proactive, perhaps it might bring the island some positive publicity, rather than being forced into doing things.

 

The opportunity to stand fast was pissed away by the Bell administration.  

[Non-Believer]

29 minutes ago, Derek Flint said:

The opportunity to stand fast was pissed away by the Bell administration.  

Was standing fast ever a viable option? The Island was leaned on by considerably more influential parties and may yet be again.

[Derek Flint]

10 hours ago, Non-Believer said:

Was standing fast ever a viable option? The Island was leaned on by considerably more influential parties and may yet be again.

I honestly don’t know. Could we have taken an incredibly strong position and suffered blacklist status and notoriety? Would it have been that bad? One would hope the numbers were run.

many years ago, I remember talking to Anne Craine about the way things were going. I said then that Government had to be incredibly careful that the Island didn’t just become ‘a nice place to live’. There had to be good incentive for people to make the move, and for the population to steadily grow. And for that, there has to be good incentive for businesses to physically base themselves on the Island. I think that there are fewer reason than ever for the latter. Even setting up a £50m fund failed to attract anything significant.

I’m increasingly of the opinion there needs to be a significant resetting of perspective for the Island. Almost a period of hibernation, reformation of local and national government, a policy of thrift and a time for some reflection and redefining of what the Island is going to be in the future. The ‘nice place to live’ model might be the only sustainable one, and with a more streamlined public service just might be the best option. I for one can’t identify the ‘next big thing’ that the Island can jump on, but one thing is for sure, there’s a real risk that if taxation is normalised then there is a real problem ahead.

not seeing much public airing of this in manifestos either.

[2112]

11 hours ago, Non-Believer said:

Was standing fast ever a viable option? The Island was leaned on by considerably more influential parties and may yet be again.

HRH The Chief Minister pleads and presents this as a disaster. I’m sorry but the Tresury bods should be been doing whatever they do. At present it seems nothing but whinging has been done, instead of devising new policies - unless new policies are being devised by the big four accountants. 
 

HRH The Chief Minister seems to love climate change. Without an economy functioning and  bringing in revenue, climate change is another pipe dream, an expensive one. Ô

[2112]

1 hour ago, Derek Flint said:

I honestly don’t know. Could we have taken an incredibly strong position and suffered blacklist status and notoriety? Would it have been that bad? One would hope the numbers were run.

many years ago, I remember talking to Anne Craine about the way things were going. I said then that Government had to be incredibly careful that the Island didn’t just become ‘a nice place to live’. There had to be good incentive for people to make the move, and for the population to steadily grow. And for that, there has to be good incentive for businesses to physically base themselves on the Island. I think that there are fewer reason than ever for the latter. Even setting up a £50m fund failed to attract anything significant.

I’m increasingly of the opinion there needs to be a significant resetting of perspective for the Island. Almost a period of hibernation, reformation of local and national government, a policy of thrift and a time for some reflection and redefining of what the Island is going to be in the future. The ‘nice place to live’ model might be the only sustainable one, and with a more streamlined public service just might be the best option. I for one can’t identify the ‘next big thing’ that the Island can jump on, but one thing is for sure, there’s a real risk that if taxation is normalised then there is a real problem ahead.

not seeing much public airing of this in manifestos either.

I like your suggestion  of a policy of thrift …….. funny really it’s something that most of the candidates will never grasp. IOMG will never grasp it either - never ending wish list! 

Edited May 31, 2021 by 2112