JP McManus: I earn abroad but I spend it at home

BILLIONAIRE businessman JP McManus has said he was doing this country “more good” by earning his fortune abroad.

In a rare public comment on his tax status, Mr McManus hit back at critics of tax exiles, who say successful business people are not doing their patriotic duty by paying their taxes in Ireland.

“I didn’t leave the country in order to avoid paying a tax, or to avoid paying a future tax that was about to come down the line. I paid my taxes and I set up a business abroad,” he said.

The Limerick native, who is a tax resident of Switzerland, was visibly annoyed after being asked about his contribution to Ireland during the recession.

The 60-year-old, whose Golf Pro-AM alone has raised over €95 million for charities in the Mid-West, insisted he was proud to be Irish and said he was improving the country by spending his money here.

“If I was somebody who set up a business abroad and it didn’t go so well I’d be considered an emigrant, if it goes well I’m considered an exile. Now, what do they want?

“Do they want you to come back and try and support the local economy, try to earn some money abroad and then put it in the local economy?

“That’s what I like to do. I consider myself Irish. I’m proud to be Irish and I think I’m doing the country more good by being abroad, trying to earn a few quid. If I bring it back and decide to spend it whatever way I like here at least I’m improving the economy.”

Mr McManus made the public comment on his tax status as figures show just €1.48m was raised from the levy on Irish-domiciled tax exiles. Just 10 individuals paid the levy introduced in the 2009 budget.

He was speaking at the University of Limerick, where 125 students were awarded All-Ireland Scholarships.

Sponsored by Mr McManus, the scheme provides financial assistance to high-achieving students who finished their Leaving Certificate or A-level examinations in 2011.

Under the programme, each student receives a bursary of €6,750 per year at college and 1,300 students have benefited from the scholarship trust.

Speaking at the event, Taoiseach Enda Kenny said the programme was possible because of Mr McManus’s initiative, which he said others in similar circumstances could take example from.

“These scholarships happen because of the initiative of JP McManus.

“He is doing that as an example of how others who have made their way through life can help their country and more people.”

When asked if tax exiles should be forced to pay more given the current economic crisis, Mr Kenny said no government could dictate where people live and pay their taxes.

“You have free movement of people within the EU and around the world and obviously people pay their taxes where they earn them.

“I have long spoken about people’s patriotism in this way before. You can’t dictate where people live and there are arrangements from that point of view for those who don’t live here.”

Among the guests at Saturday’s event to meet with students, was dancer Michael Flatley, who revealed he could not afford to go to college.

“I never made it to university, I didn’t have the funding so I’m incredibly impressed with JP McManus, needless to say.

“He’s one of the most generous men I think I’ve ever met and he must be congratulated on what he’s doing... cultivating the future of this great country,” he said.

Mr Flatley dismissed recent rumours that he was planning to sell his lavish Castlehyde Estate in Co Cork as “untrue”.

He said he loves coming back to Ireland adding, “I wish I could spend more time here”.

The American-born dancer said he has known Mr McManus for many years and described him as a dear friend “and a man I deeply admire”.