Economy

International tax action demanded by Republic of Ireland

A politician from the Republic of Ireland says that the international community must work together in order to stop large multinational firms that use cross-border tax loopholes. Richard Bruton, Enterprise minister, said that they play the tax codes one against the other.

Bruton added, “That is tax planning and I think we do need international cooperation through the OECD to deal with the aggressive nature of that.” The recent development comes as the EU leaders meet in Brussels to discuss the problem of tax avoidance. Meanwhile, UK Prime Minister David Cameron and others will be trying to crack down on those who do not pay their fair share of tax.

The PM will urge EU leaders to support global action against tax evasion and aggressive tax avoidance, which causes huge losses to nations. Chief Secretary to the Treasury, Danny Alexander, in an interview said that handling this issue was the main priority for the UK’s presidency of the G8.

Taoiseach Enda Kenny is likely to face a tough time amid accusations from overseas and within Ireland of a loose tax regime. The need for this meeting has come up as Apple is under fire over the tax use of Irish subsidiaries.