US firms fail to pay full Irish tax
RTÉ reported yesterday that US companies paid an average tax rate of 8% on the profits generated by their Irish divisions in 2008, the most recent date for which such figures are available. The information was made available to RTÉ under the Freedom of Information Act and was based on an analysis of 304 company tax returns published in a recent US Congressional Budget Office report.
The report suggests that companies can end up paying below the 12.5% tax rate by claiming tax credits for a range of purposes, including R&D activity. According to RTÉ’s account, 2008 saw US companies with interests in Ireland pay the Revenue Commissioners a combined €1.29 billion, but repatriate some €16.1bn to the US.
