Ireland 'Safe' From US Tax Plans

by Jason Gorringe, Tax-News.com, London

18 March 2010

Irish Prime Minister, Brian Cowen has said that companies based in Ireland can expect to face no sanctions from the United States, despite the Obama administration's plans to tighten the tax treatment of multinationals with operations in lower tax jurisdictions such as Ireland.

Cowen made the comments to the national broadcaster, RTÉ, while in California on an official visit to promote Ireland to US firms. He said that Barack Obama had indicated to him that the US does not deem Ireland to be part of the problem of American companies seeking to avoid paying taxes on domestic profits by directing transactions through low tax jurisdictions, allaying earlier fears that Ireland was in the US Treasury's sights. Administration officials have reportedly assured Cowen that the US government is instead seeking to ensure that tax liabilities due in the US are not mitigated by the use of so-called ‘tax havens’, and that US firms would remain free to invest in Ireland.

Cowen said that to retain its reputation, the government would continue to ensure that Ireland remains in compliance with international standards on tax transparency.

The Irish Prime Minister is in the United States as part of a trade mission, which includes a meeting with Obama on St Patrick’s Day, March 17. During his official visit, Cowen will promote Ireland as an innovation hub, encourage further investment by US investors with Irish operations, and meet with Irish businesses present in the US.

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