It’s time to stop the tax dodgers

Sir —Tom Maguire (Business, Sunday Independent, February 4) points out that the OECD doesn’t regard Ireland as a tax haven. He fails to mention that the OECD also doesn’t regard Panama, Bermuda, the Cayman Islands, Luxembourg or Singapore as tax havens either.

In fact, the OECD considers that only one country, Trinidad and Tobago, is a tax haven.

Mr Maguire also claims that Ireland has had some ‘perceived reputational issues’ with facilitating tax dodging that have now ‘been dealt with and fast’. However, the truth is that despite many proclamations to the contrary, companies can continue to use the world famous ‘Double Irish’ until the beginning of 2021 to avoid billions of euro in tax. It is well documented that many companies continue to do so.

Oxfam’s recent report — ‘Blacklist or Whitewash’ established that royalties sent out of Ireland were equivalent to 26pc of the country’s gross domestic product in 2015. This is far above what would be expected based on normal economic activity. This clearly indicates that if Ireland was prepared to look, it would find much that needs to be changed.

The UN estimates that developing countries lose around $100bn annually as a result of corporate tax avoidance, depriving them of the vital revenue to provide the health, education and infrastructure that lift people out of poverty. It is important that Ireland’s corporate tax policy is seen within this global context and its possible effects on poor and marginalised people elsewhere.

Michael McCarthy Flynn, Senior Research and Policy

Coordinator, Oxfam Ireland