Nat O'Connor: Interest observation reported in The Irish Times by international law firm Cadwalader.
“The country’s tax regime is coming under increasing scrutiny by the EU for the aggressive tax planning strategies undertaken by foreign multinationals, a practice termed ‘brass-plating,’” said Cadwalader. ...
The law firm said that beyond the risk of reputational damage, senior Irish officials noted that the trend of inversions may place Ireland in “an untenable fiscal situation” where the gain in tax revenue from redomiciled corporations is more than offset by the accompanying increase in the nominal gross national product used to calculate Ireland’s contributions to the EU budget.
“The resounding concern is that Ireland bears the brunt of the reputational and economic impact of inversions but reaps little of the job creation, substantive investment, economic growth or other tangible benefits typically afford by traditional foreign direct investment,” said Cadwalader in the note.