Ireland’s Emergence as a Major Tax Haven

By John O’Donnell

DUBLIN (Reuters) – Ireland has leapfrogged the Bahamas to become the world’s ninth most significant tax haven, according to a ranking by pressure group the Tax Justice Network, which campaigns for tax transparency.

Ireland’s first appearance in the global top ten places it among countries like the British Virgin Islands, which tops the list, and the Netherlands, having improved from eleventh place in the previous report in 2021.

The study measures corporate financial activity in countries, including money flows, transparency, and tax schemes, assigning a points-based ranking.

The Tax Justice Network criticizes Britain’s overseas territories, such as the Virgin Islands, while noting Ireland’s growing importance.

The list was published shortly after Ireland received $14 billion in back taxes from Apple after the European Court of Justice ruled the country’s favorable tax treatment of Apple was unlawful.

A spokesperson for Ireland’s Department of Finance stated that Ireland was not a tax haven and emphasized steps taken to combat aggressive tax planning by reforming its tax code, supporting international tax reform.

Nessa Ni Chasaide of Maynooth University remarked that Dublin had responded to criticism by modifying—rather than eliminating—favorable tax schemes, allowing international companies to write off the value of intellectual property against profits to reduce taxes.

“Ireland plays global tax games in a very sophisticated way,” she stated. “Every time it comes under pressure, it has a new game. Ireland is laughing all the way to the bank.”

Corporate tax revenues in Ireland have surged over the past decade, increasing from 4.4 billion euros in 2015 to an expected 29.5 billion euros this year, excluding the Apple windfall.

These receipts, primarily from a few U.S. multinationals, now constitute 28% of all tax collected in Ireland each year, leading to the strongest public finances in Europe.