Starbucks try to sort it, Microsoft now in the Tax avoidance headlights. Ireland is facilitating widespread European tax avoidance. Shocking.

Actually that's a TV commercial that was used around the world in 2009 for IDA Ireland. I was on the team that did it and were terribly proud of it then. Now, I'm not, in what's developing as being more clear that Irish investment policy is a sham and simply facilitating widespread tax evasion.

Ireland, it is becoming clear, is at the centre of facilitating widespread European tax avoidance along with countries like Luxembourg and Bermuda. Our investment policy in attracting high-profile US dot coms, is nothing to do with innovation or a "great workforce" that draws US multinationals here - it's because of our tax breaks, pure and simple. It allows them to divert other european revenue to Ireland, declare it here and pay low tax. Rather than declare it where it's generated and pay it there.

The premise that big multinationals invest in Ireland because of something other than tax, is a lie. You can see previous blogs on this issue here;

- On Starbucks UK http://streamabout.blogspot.ie/2012/12/starbucks-are-we-seeing-death-of-brand.html  

- On last weeks Dropbox announcement to base in Dublin http://streamabout.blogspot.ie/2012/12/now-dropbox-comes-to-dublin-for-greatly.html 

- And general tax avoidance http://streamabout.blogspot.ie/2012/12/starbucks-amazon-google-microsoft-wpp.html

Starbucks, following a series of protests against them in the UK Saturday, by 'UKUncut' after the dreadful revelations regarding their low, low, UK tax, have made efforts to settle. However, the whole tax avoidance story against Facebook, Amazon, Starbucks and others emerging, threw Ireland into the headlights. It's their stories that's unravelling ours.

Vodafone now are starting to get a mention and they too have a major Irish presence.

Starbucks attempted settlement with UK Revenue by offering to pay 10 million a year tax, for two years. Big deal. Their chief executive, gets 16 million a year alone. Their brand is damaged for ever and they'll not recover from it.

Being mentioned too, by the US Government as Europe's "biggest tax haven" and, mentioned in the same breath as countries like Belize and The Cayman Islands, Is good old Ireland. Ireland's investment policy, it's becoming obvious, seems to be driven by helping major companies avoid tax elsewhere. In fact, 50% of Irish government income revenue tax comes from US Multinationals. Clearly, they don't generate that tax and revenue in Ireland.

At a meeting I attended with US Secretary of State Hillary Clinton last Thursday, she talked about US companies investment in Ireland. At nearly 2 billion usd, it's more than US companies invest in India, Brazil, China, and Russia....COMBINED. Now we know why.

The reason? Nice climate? Nah. Great workforce? nope. Super tax incentives? Absolutely. And for most, call that, tax avoidance.

And this is an Irish Government, knowingly complicit in widespread tax avoidance, that persecutes its own citizens to pay their tax. 

And a new brand to take over the Irish story as a tax avoider (taking the mantle from Starbucks), is our good friends, Microsoft.

Microsoft is channelling Windows 8 online sales to Luxembourg in order to avoid tax in the UK of over 2 billion euro. According to The Sunday Times, Microsoft keeps a small office in a Luxembourg business park with 6 staff that handles millions of pounds in European online sales.

The bulk of that money is then transferred elsewhere. Any ideas? Yep to its European headquarters in Dublin, Ireland. Profits are then routed to Bermuda without UK corporation tax being paid.

Bermuda? Luxembourg? Dublin? And this is Microsoft. Dear oh dear. Ireland's role in this is truly appalling.

Luxembourg is a long practitioner of these black arts and is now the highest GDP per head of the population in the world, largely because of these sham transactions. Its tax rate of 21% can be reduced through negotiation and other royalty taxes can be as low as 6% to even 1%. 

(Indeed, it's right bang in the middle of the new, and coming to a screen near you, JP Morgan tax avoidance scheme - 200 million? JP Morgan? THE brand of trust??? Jesus).

One of the most profitable companies in Luxembourg is Amazon who has their European headquarters there. European Headquarters in Luxembourg??? ...jeez. Amazon therefore avoids UK tax on about 2.9 billion sterling of revenue generated by British consumers.

Apple is at it too. Its sales of UK Itunes goes straight to its HQ in Luxembourg. With a turnover of 836 million sterling, it employs 16 staff. For a company turning over near a billion, 16 people. A sham!!!

Microsoft's online store in the UK references the fact that if you buy online you are in fact dealing with Microsoft Luxembourg and ultimately, as we all know now, Ireland. 

One Microsoft Ireland company accounts reveal it receives about 1.7 billion sterling in UK revenue and no corporation tax is paid on any of that money. Another Microsoft Ireland company - Microsoft Ireland research - reported 4.3 billion usd in profits for licensing rights in 2011 (so clearly not generated in Ireland) which presumably paid the super Irish tax avoidance rate of 12.5% or lower.

Profits from this Irish company are paid to another Irish company - Round Island One - which pays its dividends to Round Island Holdings based in....Bermuda. Shocking. 

I am Irish. 

A country that has put its citizens into poverty in order to pretend that it was "honourable" and honouring promises to bank investors (bondholders). One wonders was pressure put on by these multinationals?

When in fact it was at the same time dishonouring its European partners by facilitating enormous tax avoidance. IDA need to explain it all now.

This needs disclosure because if we don't that, our European partners will demand it. We should act before they start to crucify us over this. 
And they will.

We're looking like the con merchants of Europe.

Iceland now considers online ban of porn of gambling. Vodafone considers it too.

I've blogged before about countries trying to restrict access to online and Social Media largely, for political purposes. China obviously restricts Facebook and recently, those two great bastions of democracy - Eygpt and Turkey - have done the same. http://streamabout.blogspot.ie/2012/09/india-turkey-start-to-ban-social-media.html

It follows on from Social Media playing a key role in revolutions and overturning Governments. Governments, that is, that they don't like.

Now, for different reasons, Iceland is in on the game.

Their two largest ISP's - Vodafone and Siminn - are looking to shut down porn, gambling and wait for it, "other questionable content". Would that be the Russell Brand site? Because I'd be in favour of that. But once you hear a loose statement like that - "questionable content" - you know you're in trouble.

The reason is of course, like Turkey, Eygpt and China have their reasons, to "protect" Icelandic citizens from "viruses" and "malware". Indeed. Kind of like concerned parents.

In April of course, the UK blocked sites like "pirate bay" to stop illegal downloads - to protect their citizens I guess....or is that to protect multinational companies? I'm just not sure. They are actively considering a ban on porn applying pressure on ISPs according to The Sunday Times.

Worse still, they've almost introduced, as part of their 'cyber security strategy', a ban on "criminals" and "cyber bullies" online. Worrying stuff because loose definitions allow abuse. Are Scottish nationalists "cyber bullies"? 

Perhaps Vodafone and Siminn would like to return the profits they made from allowing access to porn and gambling? Nice signal of sincerity I'd have thought. And of course, this is exactly the ban that Mitt Romney wants too. Australia is also actively considering it and extending it to "terrorist sites". Hmmm, they'd be the sites the Australian government don't like. Aboriginal sites perhaps?

If a stance is going to be taken that gambling is "wrong" online, then it should proceed surely, to horse racing, football betting, and so on. Yet I don't hear calls to ban that. Why? Because this is a focus of all things online. This is an attempt to restrict online access because Governments don't like it.

They control media through licensing or judicially in the offline world. It is an outrage that in Ireland, you need a Government approved licence to broadcast a radio station. Outrageous.

Whether you like people to gamble or to look at porn is not the point. Once you allow someone else to start closing down sites, at their discretion, you are now into censorship of online. Perhaps consider closing alcohol sites because they might lead to drink driving or because you're Muslim? Or political sites that eschew revolution and anarchy? Or whatever.

I'm surprised at Vodafone particularly. Their concerns on "malware" and "viruses" seems only to apply to the good citizens of Iceland. Why not extend that concern to their global offices? Does that concern not outweight their financial gain I wonder.

You're allowing some balding, middle aged bloke, with his shoes on a big desk, in a grey suit, decide what you should and shouldn't see each morning. And that's wrong.

There's a start of censorship here, to control the media - which is more and more online. To control your voice.

As someone wise once said - I don't agree with what you're saying, I don't like what you're saying, but I'll fight to the death for your right to say it.

Personally, for example, I think the US ban on online ammo sales is probably a "good thing". But don't fall into that trap. Because someone has a different radical view than you, or you don't like their religion, or their politics, or just because they're different, don't deny them their rights - within the law. 

And this is not about that, trust me.
It's about trying to get on top, to control, Social Media.

Let people be heard.
All the people.