Ireland Climbs Global Tax Haven Ranks, Surpassing Bahamas

Ireland has moved ahead of the Bahamas to become the ninth most significant tax haven globally, according to the Tax Justice Network. The report highlights the country's strategic use of tax schemes, corporate financial activities, and transparency issues, compounded by a substantial rise in corporate tax revenues.

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

Ireland's first appearance in the global top ten sees it alongside countries such as the British Virgin Islands, which tops the list, and the Netherlands, having moved up from eleventh place in the previous 2021 report. The study measures corporate financial activity, money flows, transparency, and tax schemes using a points-based ranking.

The Tax Justice Network sharply criticizes Britain's overseas territories, such as the Virgin Islands, and underscores Ireland's increasing prominence. The list was released shortly after Ireland received $14 billion in back taxes from Apple, following a European Court of Justice ruling on the country's unlawful tax treatment of the iPhone maker.

A spokesperson for Ireland's Department of Finance asserted that Ireland is not a tax haven and emphasized steps taken to address aggressive tax planning through tax code reforms and support for international tax reform. Nessa Ni Chasaide of Maynooth University noted that Dublin has adapted to criticism by adjusting favourable tax schemes, enabling global companies to write off intellectual property values against profits to reduce taxes.

"Ireland plays global tax games in a very sophisticated way," she stated. "Every time it comes under pressure, it devises a new strategy. Ireland is laughing all the way to the bank." Corporate tax revenues in Ireland have surged over the last decade, from 4.4 billion euros in 2015 to an anticipated 29.5 billion euros this year, excluding the Apple windfall.

The receipts, primarily paid by a few U.S. multinationals, now represent 28% of all tax collected annually in Ireland, positioning its public finances as some of the strongest in Europe. (Reporting by John O'Donnell, Editing by Christina Fincher)

(With inputs from agencies.)