Editing Republic of Ireland (section)

===Taxation policy===
The transformation of Ireland's tax policy started with the creation of a 10% low-tax "[[special economic zone]]", called the [[International Financial Services Centre, Dublin|International Financial Services Centre]] (or "IFSC"), in 1987.<ref>{{cite web|url=http://www.finance-magazine.com/display_article.php?i=2300&pi=142|title=Dermot Desmond on the IFSC past and future|publisher=Finance Dublin|year=2003|access-date=11 April 2018|archive-date=23 March 2018|archive-url=https://web.archive.org/web/20180323030751/http://www.finance-magazine.com/display_article.php?i=2300&pi=142|url-status=live}}</ref> In 1999, the entire country was effectively "turned into an IFSC" with the reduction of Irish corporation tax from 32% to 12.5%.<ref>{{cite web |url=http://www.budget.gov.ie/Budgets/2015/Documents/EY_Historical_Dev_International_Context_Irish_%20Corporation_Tax.pdf |title=History of the Irish Corporate Tax System |publisher=Ernst and Young |year=2014 |access-date=11 April 2018 |archive-date=10 October 2018 |archive-url=https://web.archive.org/web/20181010024636/http://budget.gov.ie/Budgets/2015/Documents/EY_Historical_Dev_International_Context_Irish_%20Corporation_Tax.pdf |url-status=live }}</ref><ref>{{cite web |url=https://www.oireachtas.ie/parliament/media/committees/finance/Report---Global-Corporate-Taxation-Final.pdf |title=Report on Ireland's Relationship with Global Corporate Taxation Architecture |publisher=Department of Finance |year=2014 |access-date=11 April 2018 |archive-date=9 May 2018 |archive-url=https://web.archive.org/web/20180509004309/https://www.oireachtas.ie/parliament/media/committees/finance/Report---Global-Corporate-Taxation-Final.pdf |url-status=live }}</ref> This accelerated the later stages of Ireland's transition from a predominantly agricultural economy into a [[knowledge economy|knowledge]] and [[service economy]] initially focused on property and construction and later focused on attracting mainly US multinationals from high-tech, life sciences, and financial services industries seeking to avail of Ireland's low corporation tax rates and favourable [[Corporation tax in the Republic of Ireland|corporate tax system]].

The multinational tax schemes foreign firms use in Ireland materially distort Irish economic statistics. This reached a climax with the "[[leprechaun economics]]" GDP/GNP growth rates of 2015 (as Apple restructured its Irish subsidiaries in 2015). The [[Central Bank of Ireland]] introduced a new statistic, Modified gross national income, to remove these distortions. GNI* is 30% below GDP (or, GDP is 143% of GNI).<ref>{{cite news|url=https://www.irishtimes.com/business/economy/cso-paints-a-very-different-picture-of-irish-economy-with-new-measure-1.3155462|title=CSO paints a very different picture of Irish economy with new measure|newspaper=The Irish Times|date=15 July 2017|access-date=12 April 2018|archive-date=21 January 2019|archive-url=https://web.archive.org/web/20190121164330/https://www.irishtimes.com/business/economy/cso-paints-a-very-different-picture-of-irish-economy-with-new-measure-1.3155462|url-status=live}}</ref><ref>{{cite news|url=https://www.independent.ie/business/irish/new-economic-leprechaun-on-loose-as-rate-of-growth-plunges-35932663.html|title=New economic Leprechaun on loose as rate of growth plunges|work=Irish Independent|date=15 July 2017|access-date=12 April 2018|archive-date=25 October 2019|archive-url=https://web.archive.org/web/20191025081035/https://www.independent.ie/business/irish/new-economic-leprechaun-on-loose-as-rate-of-growth-plunges-35932663.html|url-status=live}}</ref><ref>{{cite web|url=http://www.cso.ie/en/media/csoie/newsevents/documents/reportoftheeconomicstatisticsreviewgroup/ESRG_Presentation_-_Press_Briefing.pdf|title=ESRG Presentation and CSO Response|publisher=Central Statistics Office|date=4 February 2017|access-date=12 April 2018|archive-date=5 December 2017|archive-url=https://web.archive.org/web/20171205233009/http://cso.ie/en/media/csoie/newsevents/documents/reportoftheeconomicstatisticsreviewgroup/ESRG_Presentation_-_Press_Briefing.pdf|url-status=live}}</ref><ref>{{cite news|url=https://www.rte.ie/news/analysis-and-comment/2017/0204/850115-leprechaun-economics/|title=Leprechaun-proofing economic data|publisher=RTÉ News|date=4 February 2017|access-date=12 April 2018|archive-date=4 February 2017|archive-url=https://web.archive.org/web/20170204124457/https://www.rte.ie/news/analysis-and-comment/2017/0204/850115-leprechaun-economics/|url-status=live}}</ref><ref>{{cite web|url=http://www.cso.ie/en/csolatestnews/eventsconferencesseminars/resrg/|title=Report on the ESRG Review Group on GNI*|publisher=Central Statistics Office (Ireland)|date=February 2017|access-date=15 April 2018|archive-date=30 March 2017|archive-url=https://web.archive.org/web/20170330191755/http://www.cso.ie/en/csolatestnews/eventsconferencesseminars/resrg/|url-status=live}}</ref>

From the creation of the [[International Financial Services Centre, Dublin|IFSC]], the country experienced strong and sustained economic growth which fuelled a dramatic rise in Irish consumer borrowing and spending, and Irish construction and investment, which became known as the [[Celtic Tiger]] period.<ref name="aw"/><ref>{{cite web|url=http://www.esri.ie/irish_economy |title=ESRI – Irish Economy |publisher=Esri.ie |access-date=30 June 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110624030442/http://www.esri.ie/irish_economy/ |archive-date=24 June 2011 }}</ref> By 2007, Ireland had the highest private sector debt in the OECD with a household debt-to-disposable income ratio of 190%. Global capital markets, who had financed Ireland's build-up of debt in the [[Celtic Tiger]] period by enabling Irish banks to borrow in excess of the domestic deposit base (to over 180% at peak<ref>{{cite news|url=https://www.irishexaminer.com/business/banks-continue-to-grow-deposits-as-loan-books-shrink-215666.html|title=Irish Banks continue to grow deposits as loan books shrink|work=Irish Examiner|date=December 2012|access-date=11 April 2018|archive-date=12 April 2018|archive-url=https://web.archive.org/web/20180412082058/https://www.irishexaminer.com/business/banks-continue-to-grow-deposits-as-loan-books-shrink-215666.html|url-status=live}}</ref>), withdrew support in the [[2008 financial crisis]]. Their withdrawal from the over-borrowed Irish credit system would precipitate a deep Irish property correction which then led to the [[Post-2008 Irish banking crisis]].<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/scr/2016/cr16258.pdf|title=Ireland Financial System Stability Assessment 2016 |publisher=International Monetary Fund|date=July 2016|access-date=11 April 2018|archive-date=29 March 2017|archive-url=https://web.archive.org/web/20170329130553/https://www.imf.org/external/pubs/ft/scr/2016/cr16258.pdf|url-status=live}}</ref><ref name="aw">{{cite web|url=https://www.socialeurope.eu/wp-content/uploads/2017/01/p_imk_wp_175_2017.pdf|title=Crisis Recovery in a Country with a High Presence of Foreign Owned Companies|publisher=IMK Institute, Berlin|date=January 2017|access-date=11 April 2018|archive-date=19 February 2017|archive-url=https://web.archive.org/web/20170219202558/https://www.socialeurope.eu/wp-content/uploads/2017/01/p_imk_wp_175_2017.pdf|url-status=live}}</ref>

Ireland's successful "low-tax" economy opens it to accusations of being a "corporate [[tax haven]]",<ref>{{cite web|url=http://www.thejournal.ie/oxfam-tax-haven-3133714-Dec2016/|title=Ireland named world's 6th worst corporate tax haven|publisher=journal.ie|date=12 December 2016|access-date=11 April 2018|archive-date=26 March 2018|archive-url=https://web.archive.org/web/20180326202524/http://www.thejournal.ie/oxfam-tax-haven-3133714-Dec2016/|url-status=live}}</ref><ref>{{cite news|title = The United States' new view of Ireland: 'tax haven'|url = https://www.irishtimes.com/life-and-style/abroad/the-united-states-new-view-of-ireland-tax-haven-1.2896469?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Flife-and-style%2Fabroad%2Fthe-united-states-new-view-of-ireland-tax-haven-1.2896469|newspaper = The Irish Times|date = January 2017|access-date = 11 April 2018|archive-date = 9 April 2018|archive-url = https://web.archive.org/web/20180409234949/https://www.irishtimes.com/life-and-style/abroad/the-united-states-new-view-of-ireland-tax-haven-1.2896469?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Flife-and-style%2Fabroad%2Fthe-united-states-new-view-of-ireland-tax-haven-1.2896469|url-status = live}}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/economy/europe-points-finger-at-ireland-over-tax-avoidance-1.3417948|title=Europe points finger at Ireland over tax avoidance|newspaper=The Irish Times|date=7 March 2018|access-date=11 April 2018|archive-date=7 March 2018|archive-url=https://web.archive.org/web/20180307095256/https://www.irishtimes.com/business/economy/europe-points-finger-at-ireland-over-tax-avoidance-1.3417948|url-status=live}}</ref> and led to it being "blacklisted" by Brazil.<ref>{{cite news|url=https://www.reuters.com/article/ireland-brazil-funds/blacklisted-by-brazil-dublin-funds-find-new-ways-to-invest-idUSL8N1MK2NX|title=Blacklisted by Brazil, Dublin funds find new ways to invest|work=Reuters|date=20 March 2017|access-date=11 April 2018|archive-date=14 June 2018|archive-url=https://web.archive.org/web/20180614121655/https://www.reuters.com/article/ireland-brazil-funds/blacklisted-by-brazil-dublin-funds-find-new-ways-to-invest-idUSL8N1MK2NX|url-status=live}}</ref><ref>{{cite news|url=https://www.independent.ie/business/irish/ireland-no-tax-haven-us-authorities-told-35565554.html|title=Oregon Department of Revenue made a recommendation that Ireland be included as a 'listed jurisdiction' or tax haven|work=Irish Independent|date=26 March 2017|access-date=11 April 2018|archive-date=14 June 2018|archive-url=https://web.archive.org/web/20180614121653/https://www.independent.ie/business/irish/ireland-no-tax-haven-us-authorities-told-35565554.html|url-status=live}}</ref> A 2017 study ranks Ireland as the 5th largest global [[Conduit and Sink OFCs|Conduit OFC]], which legally route funds to [[tax havens]]. A serious challenge is the passing of the US [[Tax Cuts and Jobs Act of 2017]] (whose FDII and GILTI regimes target Ireland's multinational tax schemes).<ref>{{cite news|url=https://www.irishtimes.com/business/economy/trump-s-us-tax-reform-a-significant-challenge-for-ireland-1.3310866|title=Trump's US tax reform a significant challenge for Ireland|newspaper=The Irish Times|date=30 November 2017|access-date=11 April 2018|archive-date=25 June 2018|archive-url=https://web.archive.org/web/20180625213509/https://www.irishtimes.com/business/economy/trump-s-us-tax-reform-a-significant-challenge-for-ireland-1.3310866|url-status=live}}</ref><ref>{{Cite news|title = US corporations could be saying goodbye to Ireland|url = https://www.irishtimes.com/business/economy/us-corporations-could-be-saying-goodbye-to-ireland-1.3359050?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fus-corporations-could-be-saying-goodbye-to-ireland-1.3359050|newspaper = The Irish Times|date = 17 January 2018|access-date = 4 July 2021|archive-date = 9 April 2018|archive-url = https://web.archive.org/web/20180409233616/https://www.irishtimes.com/business/economy/us-corporations-could-be-saying-goodbye-to-ireland-1.3359050?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fus-corporations-could-be-saying-goodbye-to-ireland-1.3359050|url-status = live}}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/donald-trump-singles-out-ireland-in-tax-speech-1.3310149?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Fdonald-trump-singles-out-ireland-in-tax-speech-1.3310149|title=Donald Trump singles out Ireland in tax speech|newspaper=The Irish Times|date=29 November 2017|access-date=11 April 2018|archive-date=3 April 2018|archive-url=https://web.archive.org/web/20180403112427/https://www.irishtimes.com/business/donald-trump-singles-out-ireland-in-tax-speech-1.3310149?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Fdonald-trump-singles-out-ireland-in-tax-speech-1.3310149|url-status=live}}</ref><ref>{{cite magazine|url=https://hbr.org/ideacast/2017/12/breaking-down-the-new-u-s-corporate-tax-law|title=Breaking Down the New U.S. Corporate Tax Law|magazine=Harvard Business Review|date=26 December 2017|access-date=11 April 2018|archive-date=22 July 2018|archive-url=https://web.archive.org/web/20180722112253/https://hbr.org/ideacast/2017/12/breaking-down-the-new-u-s-corporate-tax-law|url-status=live}}</ref> The EU's 2018 Digital Sales Tax (DST)<ref>{{cite web|url=http://www.europarl.europa.eu/news/en/press-room/20180309IPR99422/meps-approve-new-eu-corporate-tax-plan-which-embraces-digital-presence|title=MEPs approve new EU corporate tax plan which embraces 'digital presence'|publisher=European Parliament|date=15 March 2018|access-date=11 April 2018|archive-date=16 March 2018|archive-url=https://web.archive.org/web/20180316171804/http://www.europarl.europa.eu/news/en/press-room/20180309IPR99422/meps-approve-new-eu-corporate-tax-plan-which-embraces-digital-presence|url-status=live}}</ref> (and desire for a [[Common Consolidated Corporate Tax Base|CCCTB]]<ref>{{cite web|url=http://www.thejournal.ie/eu-digital-tax-ireland-2-2-3918628-Mar2018/|title=What the EU's new taxes on the tech giants mean – and how they would hurt Ireland|work=TheJournal.ie|date=24 March 2018|access-date=11 April 2018|archive-date=29 March 2018|archive-url=https://web.archive.org/web/20180329085428/http://www.thejournal.ie/eu-digital-tax-ireland-2-2-3918628-Mar2018/|url-status=live}}</ref>) is also seen as an attempt to restrict Irish "[[Corporation tax in the Republic of Ireland#Multinational tax schemes|multinational tax schemes]]" by US technology firms.<ref>{{cite news |url=https://www.independent.ie/business/brexit/shakeup-of-eu-tax-rules-a-more-serious-threat-to-ireland-than-brexit-36130545.html |title=Shake-up of EU tax rules a 'more serious threat' to Ireland than Brexit |work=Irish Independent |date=14 September 2017 |access-date=11 April 2018 |archive-date=16 November 2019 |archive-url=https://web.archive.org/web/20191116015310/https://www.independent.ie/business/brexit/shakeup-of-eu-tax-rules-a-more-serious-threat-to-ireland-than-brexit-36130545.html |url-status=live }}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/economy/why-ireland-faces-a-fight-on-the-corporate-tax-front-1.3426080|title=Why Ireland faces a fight on the corporate tax front|newspaper=The Irish Times|date=14 March 2018|access-date=11 April 2018|archive-date=30 March 2019|archive-url=https://web.archive.org/web/20190330093554/https://www.irishtimes.com/business/economy/why-ireland-faces-a-fight-on-the-corporate-tax-front-1.3426080|url-status=live}}</ref><ref>{{cite news|url=https://www.independent.ie/business/irish/eu-digital-levy-could-hit-tech-fdi-and-tax-revenue-here-36725944.html|title=EU digital levy could hit tech FDI and tax revenue here|work=Irish Independent|date=21 March 2018|access-date=11 April 2018|archive-date=26 June 2019|archive-url=https://web.archive.org/web/20190626090803/https://www.independent.ie/business/irish/eu-digital-levy-could-hit-tech-fdi-and-tax-revenue-here-36725944.html|url-status=live}}</ref>