Editing Corporate haven (section)

===Misnomer===

While jurisdictions traditionally labelled as [[tax haven]]s have often marketed themselves as such, modern Offshore Financial Centres reject the tax haven label.<ref>{{cite web|url=https://www.dutchnews.nl/news/2009/05/us_tax_haven_claim_surprises_d/|title=US tax haven claim surprises Dutch|publisher=DutchNews.nl|date=5 May 2009|access-date=14 May 2018|archive-url=https://web.archive.org/web/20180515112204/https://www.dutchnews.nl/news/2009/05/us_tax_haven_claim_surprises_d/|archive-date=15 May 2018|url-status=dead|df=dmy-all}}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/economy/ireland-is-not-a-tax-haven-leo-varadkar-says-1.3303226?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fireland-is-not-a-tax-haven-leo-varadkar-says-1.3303226|title=Ireland is not a tax haven, Leo Varadkar says|newspaper=The Irish Times|date=23 November 2017|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180419054610/https://www.irishtimes.com/business/economy/ireland-is-not-a-tax-haven-leo-varadkar-says-1.3303226?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fireland-is-not-a-tax-haven-leo-varadkar-says-1.3303226|archive-date=19 April 2018|url-status=live|df=dmy-all}}</ref><ref name="straits">{{cite news|url=https://www.straitstimes.com/business/banking/spore-is-no-tax-haven-govt-experts-here|title=MOF rejects claim of Singapore as tax haven|newspaper=[[The Straits Times]]|date=14 December 2016|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180514012242/https://www.straitstimes.com/business/banking/spore-is-no-tax-haven-govt-experts-here|archive-date=14 May 2018|url-status=live|df=dmy-all}}</ref>  This is to ensure that other higher-tax jurisdictions, from which the corporate's main income and profits often originate, will sign bilateral tax-treaties with the haven,<ref name="xyz"/> and also to avoid being black-listed.<ref name="reuters1">{{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=13 May 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|archive-date=14 June 2018|url-status=live|df=dmy-all}}</ref><ref name="independent1">{{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|newspaper=Irish Independent|date=26 March 2017|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180614121653/https://www.independent.ie/business/irish/ireland-no-tax-haven-us-authorities-told-35565554.html|archive-date=14 June 2018|url-status=live|df=dmy-all}}</ref><ref>{{cite web|url=https://www.taxjustice.net/2017/04/10/tax-haven-blacklisting-13-latin-american-countries/|title=Tax haven blacklisting in Latin America|publisher=Tax Justice Network|date=6 April 2017|access-date=21 May 2018|archive-url=https://web.archive.org/web/20180522043636/https://www.taxjustice.net/2017/04/10/tax-haven-blacklisting-13-latin-american-countries/|archive-date=22 May 2018|url-status=dead|df=dmy-all}}</ref>

This issue has caused debate on what constitutes a tax haven,<ref name="sing"/> with the OECD most focused on transparency (the key issue of traditional tax havens),<ref name="pod"/><ref name="ced">{{cite web|url=http://www.thejournal.ie/oced-ireland-tax-haven-1005122-Jul2013/|title=OECD tax chief: 'Ireland is not a tax haven'|publisher=thejournal.ie|date=23 July 2013|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180427201152/http://www.thejournal.ie/oced-ireland-tax-haven-1005122-Jul2013/|archive-date=27 April 2018|url-status=live|df=dmy-all}}</ref><ref>{{cite news|url=https://www.independent.ie/business/irish/why-irelands-transparency-and-tax-regime-means-it-is-not-a-haven-36564387.html|title=Why Ireland's transparency and tax regime means it is not a haven|newspaper=Irish Independent|date=February 2018|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180513224041/https://www.independent.ie/business/irish/why-irelands-transparency-and-tax-regime-means-it-is-not-a-haven-36564387.html|archive-date=2018-05-13|url-status=live}}</ref> but others focused on outcomes such as total [[Corporation tax in the Republic of Ireland#Effective tax rate (ETR)|effective corporate taxes]] paid.<ref>{{cite news|url=https://www.theguardian.com/commentisfree/2017/dec/07/eu-tax-haven-blacklist-whitewash-west-imperialism-tackle-avoidance|title=A tax haven blacklist without the UK is a whitewash|newspaper=The Guardian|date=7 December 2017|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180513223643/https://www.theguardian.com/commentisfree/2017/dec/07/eu-tax-haven-blacklist-whitewash-west-imperialism-tackle-avoidance|archive-date=13 May 2018|url-status=live|df=dmy-all}}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/economy/oxfam-says-ireland-is-a-tax-haven-judged-by-eu-criteria-1.3307370?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Foxfam-says-ireland-is-a-tax-haven-judged-by-eu-criteria-1.3307370|title=Oxfam says Ireland is a tax haven judged by EU criteria|newspaper=The Irish Times|date=28 November 2017|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180424215233/https://www.irishtimes.com/business/economy/oxfam-says-ireland-is-a-tax-haven-judged-by-eu-criteria-1.3307370?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Foxfam-says-ireland-is-a-tax-haven-judged-by-eu-criteria-1.3307370|archive-date=24 April 2018|url-status=live|df=dmy-all}}</ref><ref name="aa4">{{cite news|url=https://www.irishtimes.com/business/economy/joseph-stiglitz-cheating-ireland-muddled-europe-1.2776981?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fjoseph-stiglitz-cheating-ireland-muddled-europe-1.2776981|title=Joseph Stiglitz: 'Cheating' Ireland, muddled Europe|newspaper=The Irish Examiner|date=2 September 2016|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180612150004/https://www.irishtimes.com/business/economy/joseph-stiglitz-cheating-ireland-muddled-europe-1.2776981?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fjoseph-stiglitz-cheating-ireland-muddled-europe-1.2776981|archive-date=12 June 2018|url-status=live|df=dmy-all}}</ref><ref name="aa2">{{cite web|url=https://www.icij.org/investigations/paradise-papers/bermuda-luxembourg-new-eu-blacklist-omits-major-tax-havens/|title=Where is Luxembourg, Ireland and the Netherlands on the new EU blacklist|publisher=The International Consortium of Investigative Journalists|date=5 December 2015|access-date=13 May 2018|archive-url=https://web.archive.org/web/20190328142712/https://www.icij.org/investigations/paradise-papers/bermuda-luxembourg-new-eu-blacklist-omits-major-tax-havens/|archive-date=28 March 2019|url-status=dead|df=dmy-all}}</ref>  It is common to see the media, and elected representatives, of a modern corporate tax haven ask the question, "Are we a tax haven ?"<ref name="aa1">{{cite web|url=https://esvnijmegen.nl/en/esvisie/the-netherlands-tax-haven-or-not/|title=The Netherlands: tax haven or not?|publisher=ESV|date=2016|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180613212048/https://esvnijmegen.nl/en/esvisie/the-netherlands-tax-haven-or-not/|archive-date=2018-06-13|url-status=dead}}</ref><ref>{{cite web|url=http://claredaly.ie/is-ireland-a-tax-haven-for-corporations/|title=Is Ireland a Corporate Tax Haven, Clare Daly Irish Dail T.D.|date=2013|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180514064828/http://claredaly.ie/is-ireland-a-tax-haven-for-corporations/|archive-date=2018-05-14|url-status=dead}}</ref><ref>{{cite web|url=https://www.bloomberg.com/news/articles/2017-07-31/is-the-u-k-already-the-kind-of-tax-haven-it-claims-it-won-t-be|title=Is the U.K. Already the Kind of Tax Haven It Claims It Won't Be?|publisher=Bloomberg News|date=31 July 2017|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180613185644/https://www.bloomberg.com/news/articles/2017-07-31/is-the-u-k-already-the-kind-of-tax-haven-it-claims-it-won-t-be|archive-date=13 June 2018|url-status=live|df=dmy-all}}</ref><ref name="forbes">{{cite magazine|url=https://www.forbes.com/sites/taxanalysts/2013/11/06/if-ireland-is-not-a-tax-haven-what-is-it/#79ff76d37746|title=If Ireland Is Not A Tax Haven, What Is It?|magazine=[[Forbes]]|date=November 2014|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180427185227/https://www.forbes.com/sites/taxanalysts/2013/11/06/if-ireland-is-not-a-tax-haven-what-is-it/#79ff76d37746|archive-date=2018-04-27|url-status=live}}</ref>

For example, when it was shown in 2014, prompted by an October 2013 Bloomberg piece,<ref name="bbbg"/><ref name="ftt"/> that the effective tax rate of U.S. multinationals in Ireland was 2.2% (using the U.S. [[Bureau of Economic Analysis]] method),<ref>{{cite news|url=https://www.irishtimes.com/business/economy/corporate-tax-calculations-1.1689233?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fcorporate-tax-calculations-1.1689233|quote=A study by James Stewart, associate professor in finance at Trinity College Dublin, suggests that in 2011 the subsidiaries of US multinationals in Ireland paid an effective tax rate of 2.2 per cent.|title=Effective Corporate Tax calculations: 2.2%|newspaper=The Irish Times|date=14 February 2014|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180426215100/https://www.irishtimes.com/business/economy/corporate-tax-calculations-1.1689233?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fcorporate-tax-calculations-1.1689233|archive-date=26 April 2018|url-status=live|df=dmy-all}}</ref><ref name="weil">{{cite web|url=https://www.bloomberg.com/view/articles/2014-02-11/weil-on-finance-yes-ireland-is-a-tax-haven|title=Weil on Finance: Yes, Ireland Is a Tax Haven|publisher=Bloomberg News|date=11 February 2014|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180427150118/https://www.bloomberg.com/view/articles/2014-02-11/weil-on-finance-yes-ireland-is-a-tax-haven|archive-date=27 April 2018|url-status=live|df=dmy-all}}</ref><ref>{{cite news|url=https://www.irishtimes.com/business/economy/multinationals-escape-tax-due-to-exceptional-rules-study-claims-1.1784447|title=Multinationals escape tax due to 'exceptional' rules, study claims|newspaper=The Irish Times|date=6 May 2014|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180612160128/https://www.irishtimes.com/business/economy/multinationals-escape-tax-due-to-exceptional-rules-study-claims-1.1784447|archive-date=12 June 2018|url-status=live|df=dmy-all}}</ref><ref name="qzz">{{cite news|url=https://qz.com/176070/new-evidence-makes-it-plain-that-ireland-is-a-tax-haven/|title=New research makes it plain that Ireland is a tax haven|work=Quartz|date=11 February 2014|access-date=19 May 2018|archive-url=https://web.archive.org/web/20180520123906/https://qz.com/176070/new-evidence-makes-it-plain-that-ireland-is-a-tax-haven/|archive-date=20 May 2018|url-status=live|df=dmy-all}}</ref> it led to denials by the Irish Government<ref name="cnbc1">{{cite web|url=https://www.cnbc.com/2014/02/11/irish-pm-counters-corporate-tax-rate-claims-.html|title=Irish PM counters corporate tax rate claims|publisher=CNBC|date=February 2014|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180426213801/https://www.cnbc.com/2014/02/11/irish-pm-counters-corporate-tax-rate-claims-.html|archive-date=2018-04-26|url-status=live}}</ref><ref>{{cite news|url=https://www.independent.ie/irish-news/politics/kenny-warns-continued-loose-talk-on-taxation-is-damaging-our-country-35151995.html|title=Kenny warns continued 'loose talk on taxation is damaging our country'|newspaper=Irish Independent|date=February 2014|access-date=2018-06-02|archive-url=https://web.archive.org/web/20180612143512/https://www.independent.ie/irish-news/politics/kenny-warns-continued-loose-talk-on-taxation-is-damaging-our-country-35151995.html|archive-date=2018-06-12|url-status=live}}</ref> and the production of studies claiming Ireland's effective tax rate was 12.5%.<ref name="pwcrates">{{cite web|url=http://www.budget.gov.ie/Budgets/2015/Documents/Technical_Paper_Effective_Rates_Corporation_Tax_Ireland.pdf|title=Effective Corporate Tax in Ireland: April 2014|publisher=Department of Finance|date=April 2014|access-date=2018-05-13|archive-url=https://web.archive.org/web/20180424174535/http://www.budget.gov.ie/Budgets/2015/Documents/Technical_Paper_Effective_Rates_Corporation_Tax_Ireland.pdf|archive-date=2018-04-24|url-status=live}}</ref>  However, when the EU fined Apple in 2016, Ireland's largest company,<ref name="itb">{{cite news| url=http://www.top1000.ie/companies| title=Ireland's Top 1000 Companies| newspaper=The Irish Times| date=2018| access-date=2018-05-11| archive-url=https://web.archive.org/web/20180510052425/https://www.top1000.ie/companies| archive-date=2018-05-10| url-status=live}}</ref> [[EU illegal State aid case against Apple in Ireland|€13 billion in Irish back taxes]] (the largest tax fine in corporate history<ref>{{Cite magazine|url=https://time.com/4472500/apple-eu-irish-tax-bill/|title=Apple vs. the E.U. Is the Biggest Tax Battle in History|last=Foroohar|first=Rana|date=30 August 2016|magazine=[[Time (magazine)|Time]]|access-date=14 November 2016|archive-url=https://web.archive.org/web/20161114131815/http://time.com/4472500/apple-eu-irish-tax-bill/|archive-date=14 November 2016|url-status=live|df=dmy-all}}</ref>), the EU stated that Apple's effective tax rate in Ireland was approximately 0.005% for the 2004-2014 period. The EU's position was found, on appeal in the EU's court, to be unsupported by the facts. However, the G7 leaders in the wake of reporting about a Microsoft subsidiary's level of taxation in 2020, have proposed an agreement on a global [[minimum corporate tax rate]] of 15%. 
{{quote|Applying a 12.5% rate in a tax code that shields most corporate profits from taxation, is indistinguishable from applying a near 0% rate in a normal tax code.|source=[[Jonathan Weil]], Bloomberg View, 11 February 2014<ref name="weil"/>}}

Activists in the [[Tax Justice Network]] propose that Ireland's effective corporate tax rate was not 12.5%, but closer to the BEA calculation. Studies cited by ''The Irish Times'' and other outlets suggest that the effective tax rate is close to the headline 12.5 percent rate – but this is a theoretical result based on a theoretical "standard firm with 60 employees" and no exports: in reality, multinational businesses and their corporate structures vary significantly. It is not just Ireland, however.  The same BEA calculation showed that the ETRs of U.S. corporates in other jurisdictions was also very low: Luxembourg (2.4%),  the Netherlands (3.4%) and the US for multinationals based in other parts of the World.<ref name="qzz"/>  When [[Gabriel Zucman]], published a multi-year investigation into corporate tax havens in June 2018, showing that Ireland is the largest global corporate tax haven (having allegedly shielded $106 billion in profits in 2015), and that Ireland's effective tax rate was 4% (including all non-Irish corporates),<ref name="gabrielzucman">{{cite web|url=http://gabriel-zucman.eu/|title=The Missing Profits of Nations|page=31|author1=Gabriel Zucman|author2=Thomas Torslov|author3=Ludvig Wier|quote=Table 2: Shifted Profits: Country-by-Country Estimates (2015)|publisher=University of Berkley|date=June 2018|access-date=2018-05-11|archive-url=https://web.archive.org/web/20180522074245/http://gabriel-zucman.eu/|archive-date=2018-05-22|url-status=live|author1-link=Gabriel Zucman}}</ref> the Irish Government countered that they could not be a tax haven as they are OECD-compliant.<ref name="pod"/>

{{quote|There is a broad consensus that Ireland must defend its 12.5 per cent corporate tax rate. But that rate is defensible only if it is real. The great risk to Ireland is that we are trying to defend the indefensible. It is morally, politically and economically wrong for Ireland to allow vastly wealthy corporations to escape the basic duty of paying tax. If we don't recognise that now, we will soon find that a key plank of Irish policy has become untenable.|source=''[[The Irish Times]]'', "Editorial View: Corporate tax: defending the indefensible", 2 December 2017<ref>{{cite news|url=https://www.irishtimes.com/opinion/editorial/corporate-tax-defending-the-indefensible-1.3312515|title=Corporate tax: defending the indefensible|date=2 December 2017|newspaper=The Irish Times|access-date=14 May 2018|archive-url=https://web.archive.org/web/20171202044329/http://www.irishtimes.com/opinion/editorial/corporate-tax-defending-the-indefensible-1.3312515|archive-date=2 December 2017|url-status=live|df=dmy-all}}</ref>}}