I admit that I have been saying this for a long time. I have always argued that the 12.5% tax rate was like the ‘Sale’ sign on a shop window: it was an invitation to come in to see what deals were on offer, and Ireland had them aplenty. Now those deals, from that with Apple onwards, are unravelling. What is apparent is that the Irish economy is geared around a foolish tax arrangement that lets profits flow through, but not stay in the country. Paul Krugman has rightly called the result ‘Leprechaun economics’.
The Apple deal is nothing at all to do with 12.5%. Rather, they’ve a territorial tax system.