Sir, – The continuing discussion around Ireland’s alleged status as a tax haven consistently misses a fundamental point.
Tax haven or not, the reality is that the various incentives offered by Ireland to attract foreign direct investment are undermining the tax take of developing countries around the world.
Christian Aid research shows that between 2005 and 2007, €268 million flowed into Ireland from the poorest countries in the world as a consequence of the tax dodging of some multinational companies.
More recent research from Action Aid showed that since 2007, Zambia has lost out on more than $9 million to a large multinational company, through in part, the use of a brass plate company in Dublin’s IFSC.
In the new Irish Aid policy paper, the Government recommitted to greater policy coherence across departments in support of development, including our tax policy.
Implementing this, the Government’s first step should be to act on the 2011 OECD/IMF recommendation that developed countries carry out spill-over analysis of their tax policy to ensure it is not undermining the development of some of the poorest countries in the world. – Yours, etc,
SORLEY McCAUGHEY,
Christian Aid,
17 Clanwilliam Terrace,
Dublin 2.