Is this lad still trying to burn FG? Or is there an altruistic motive here??
Paddy Cosgrave behind campaign to expose âtax loopholesâ
Paul OâDonoghue
April 16 2019, 12:01am, The Times
Paddy Gosgrave, 37, described his campaign as âcheeky and colourfulâPATRICIA DE MELO MOREIRA/AFP/GETTY IMAGES
Share
Save
Paddy Cosgrave, founder of the Web Summit technology conference, has emerged as the man behind a campaign to highlight claims that Ireland allows companies to avoid paying taxes.
The Irish Tax Agency website claims that Ireland has âhelped companies avoid billions in taxesâ and states it was set up to âinform European citizensâ on new Irish tax structures.
The site says: âThis non-governmental website was created by Paddy Cosgrave for educational purposes.â It continues: âThe United Nations, in March 2019, highlighted in a special report new âpreferential tax lawsâ in Ireland which it concluded âcannot continueâ.
âMost Europeans remain unaware of these new tax structures. Below you can learn about each of these structures, which have been researched in detail and published on Wikipedia.â
It then provides links to Wikipedia articles on three corporate structures: Section 110 companies, entities called L-QIAIFs and vehicles called ICAVs. These pay minimal or no tax.
Mr Cosgrave tweeted a link to a video that said a Facebook ad for the website had been seen by more than a million people. The ad said companies âhave saved billions of eurosâ by relocating to Ireland from high-tax countries.
Mr Cosgrave said he would hold a press conference in Dublin tomorrow âfor any Irish media interested in learning more about our campaign to raise awareness about Irish tax loopholesâ.
Aisling Donohue, a tax specialist, said there had been issues in the past with companies avoiding tax on Irish assets using some of the structures highlighted on the website. However, she said many of the issues were addressed in 2016, when the rules around Section 110 companies were changed.
âHistorically we were very wedded to tax competition, and probably a bit too far, but Ireland and international rules have changed. The issues around Irish assets were addressed in 2016 . . . and I think it was dealt with in good faith.â She said it was standard practice in many countries for funds not to pay tax, with this paid instead by investors. She said there may be an issue with some foreign companies using Section 110 entities to avoid tax elsewhere but said this was an international issue.
A spokesman for the Department of Finance said: âIreland is fully committed in its support for an international tax framework that is in line with international best practice. This is demonstrated through our active participation in international fora, our agreement of new rules and recommendations at the EU and OECD, and through implementing changes.â
Ireland has consistently been accused of facilitating large-scale corporate tax avoidance. Last month a report that was accepted by the European parliament said Ireland was one of several EU areas that operated in some ways like a tax haven. Ireland has denied this, saying it does not meet the standards required to be considered one.
