Friday 28 October 2016

'Ireland isn't interested in winning tax inversions' - Bruton

Published 27/01/2016 | 08:45

Richard Bruton. Photo: Tom Burke
Richard Bruton. Photo: Tom Burke

Minister for jobs, Richard Bruton, has dismissed talk of tax inversions with US companies after democratic presidential candidate, Hilary Clinton, labelled Johnson Controls' move for Irish firm Tyco as 'outrageous'.

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Speaking on RTE's Morning Ireland, the minister said that the tax inversion that Ms Clinton was referring to is not a feature of the Irish tax system by of the US'.

"I think the first thing to say is that this is not a feature of the Irish tax code, it has absolutely got to do with the US tax code. We are not interested in winning such inversions. We're not interested in them at all, the in fact cost us money.

"We are interested in companies that invest in substance and Tyco for example has 700 people employed in Cork. Foreign companies over the last four years created 30,00 additional jobs."

It was announced this week that Johnson Controls, a US maker of car batteries, has agreed to acquire Ireland-based Tyco in a deal worth $16.5bn.

The move received widespread criticism in the US with Hilary Clinton saying that she had a plan that she would immediately put in place, if elected, to stop tax inversions.

"I have a detailed and targeted plan to immediately put a stop to inversions and invest in the US, block deals like Johnson Controls and Tyco, and place an 'exit tax' on corporations that leave the country to lower their tax bill," she said.

When asked whether or not he was concerned that comments such as Ms Clinton's would damage Ireland's reputation the minister said:

"No I think we will continue to win. IDA had the best year ever last year and this has been a feature of the landscape its not just in Ireland. As you know there have been inversions in other European countries and they are a problem with the US tax code.

"I'm not going to tell US politicians how to resolve their issues but they come from the way US tax worldwide income, which is different from other countries," the minister said.

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