Today in the press

Friday 25 July 2014 08.56
Today in the press
Today in the press

‘NO CHANCE’ OF IRISH RECAPITALISATION - Ireland has “no chance” of securing a deal on its legacy bank debt, one of the most influential figures in German politics has told The Irish Times.

Joachim Pfeiffer, who is the economic policy spokesman for the parliamentary group of the ruling Christian Democrats, said the euro zone’s new bailout fund had not been established for nor would be it used for retroactive bank recapitalisation.

“There is no chance Ireland’s legacy assets will be paid by the European Stability Mechanism. This instrument is only an instrument for emergency.”

His comments appear to punch a hole in the Government’s long-standing campaign to be compensated for the €25 billion it pumped into Bank of Ireland and Allied Irish Banks at the height of the crisis.

Dr Pfeiffer was in Dublin yesterday to speak at an event hosted by the German-Irish Chamber of Industry and Commerce.

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GOOGLE PAID €27.7M IN IRISH CORPORATION TAX LAST YEAR  - Internet giant Google paid just €27.7m in corporation tax in Ireland last year, despite revenue at its Irish unit jumping by €1.5bn to €17bn, reports The Irish Examiner.

The company, which employs nearly 2,400 people in Ireland, said the amount of corporation tax paid was up from the €17m it paid in 2012.

But the increase is unlikely to quell concerns in the US or Europe, where American multinationals have been accused of using convoluted corporate structures in order to avoid swingeing tax bills.

In March, French authorities slapped Google with a €1bn tax assessment which comprised back taxes and penalties stretching back 10 years.

Google, which has its European HQ in Dublin, manages to pay so little corporation tax in Ireland because it reduces its taxable turnover here by re-routing much of the revenue through foreign subsidiaries.

Last year, Google's Irish unit reported "administrative expenses" of €11.9bn compared with €11bn in 2012. Much of those expenses consist of royalties that are paid to an offshore unit.

Coupled with the €5.1bn costs of sales that it deducts from its revenue, that reduced its taxable profits here to just €188.5m last year.

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D’ARCY TO STEP DOWN AS BORD NA MÓNA MD – The Irish Examiner reports that Gabriel D’Arcy is to step down as managing director of Bord na Móna, after nearly seven years in charge, at the end of October.

He is set to join dairy and agri-business entity, Town of Monaghan Co-op as chief executive later this year.

It is understood that Mr D’Arcy — whose current contract with Bord na Móna wasn’t due to come up for renewal until the end of this year — offered his resignation to chairman John Horgan following the group’s AGM and the publication of its annual report and accounts earlier this week.

It is also believed that a process is already under way to find Mr D’Arcy’s successor at Bord na Móna, with it likely that a new chief will be named by early autumn.