A few taxing times but summit should be praised
THE Lough Erne Declaration – signed by G8 leaders in Fermanagh yesterday – will pose challenges to Ireland maintaining lucrative inward investment. The leaders' declaration on taxation and increased transparency says tax authorities across the world should automatically share information to fight tax evasion.
Countries should also change rules that let companies shift profits across borders to avoid taxes. The declaration also states that multinationals should report to tax authorities on what tax they pay and where they pay it.
This is not empty rhetoric as it feeds into an international view that multinationals are not paying their fair share to governments groaning under recessionary spending demands.