Obama's plans to end 'deferral' policies which allow US multinationals to avail of lower tax rates abroad is about to come to an end and at our gathering on Wall Street last week, some of the big companies represented there said this would constitute a hammerblow to the economy in the South of Ireland.
CNN describe the situtation: "Among them, reforming the "deferral" rule that lets U.S.-based multinationals take deductions on their expenses supporting overseas operations but defer paying income tax on the profits they make from their overseas operations. They only need to pay U.S. income tax on those profits if and when they bring that money back to the United States."
Of course, the major advantage in locating in the South of Ireland rather than the North was the low tax regime. What will happen now? Will both parts of Ireland lose out?
Meanwhile, I missed today's Belfast marathon, which was run in poor weather conditions though I'm told Ciara McGuigan, dep ed of the Andersonstown News was spotted running along the towpath while speaking into her mobile phone. So all is not lost then.
Frank Reynolds of Invivo Therapeutics won't have to worry about tax deferrals in the near future as he's decided to grow his business in Massachusetts — Frank, a former Irish Echo 40 Under 40 honoree was in Belfast and Dublin recently to investigate the option of locating in Ireland.
Invivo received $500k from the Massachusetts Life Sciences funding kitty — which has $1bn — and plans to ramp up production of his new treatment for spinal injury. From Boston.com: "This is a big chunk, and we plan to put it to work in Massachusetts right away," said Frank Reynolds, president of InVivo Therapeutics, which is developing spinal cord injury treatments using biomaterials combined with drugs and cells. Reynolds said he was also being wooed by economic development officials in Pennsylvania and Ireland, which had sought to host InVivo's clinical trials."
Good for Frank (pictured) and all being well, we might yet see his European headquarters in Belfast.
You can read more about his treatment for spinal chord injuries here. And he's on the local TV station:
1 comments:
Down south 60 percent of all taxes collected go to pay civil servants and fund their huge pensions.
One in five workers in private employment will be shortly unemployed.
What is wrong with this picture?
I guess the banana republic chickens will finally be coming home to roost. The days of the private jets for high government officials may be coming to an end, but I doubt it.
Maybe, life in the North is not so bad, after all. Martin, please invite Her Majesty over for tea on Sunday.
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