NOONAN HITS OUT AT EU'S PLAN FOR TAX DISCLOSURE - Finance Minister Michael Noonan has dismissed plans by Europe to force big companies to publicly disclose information about their profits and taxes paid.
Effectively snubbing the proposals by the European Commission, the minister warned against any moves that would undermine the Organisation for Economic Cooperation and Development's (OECD) attempts to clamp down on global tax avoidance, known as the Base Erosion and Profit Shifting (Beps) process. Last April, the Commission unveiled a proposal introducing public reporting requirements for the largest companies operating in the EU. But at corporate tax event in Dublin Castle yesterday, Mr Noonan, criticised the move, writes the Irish Independent. "The Commission's proposal for public country-by-country reporting goes against the Beps consensus that the value of these reports is in enabling tax authorities to see what is really happening and carry out more informed audits and assessments," Mr Noonan said. "Other non-EU countries have suggested that any public reporting requirement could result in them no longer sharing the country-by-country reports filed with their tax authorities. Ultimately, it is important that a consistent global approach is taken on this issue as with other issues," he added.
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GOVERNMENT IS IN DENIAL ABOUT REALITY OF BREXIT, SAYS MARTIN - The Government is in denial about Brexit, even though it is the "defining challenge" for the current generation, according to Fianna Fáil leader Micheál Martin.
The leader of the Republic’s biggest Opposition party warned on Thursday that the State had to face the reality of a hard Brexit. "I do not think we are approaching it with the degree of urgency that is required," he said. "We are in denial about it. Brexit remains the defining challenge for this generation." Speaking ahead of addressing the Chartered Accountants Ireland Leinster Society in Dublin, Mr Martin warned that the UK’s departure from the European Union threatened the Republic’s economic progress and strategy. He stressed that the State would have to support small and medium-sized businesses in growing and finding new markets to replace those put at risk by the UK’s decision to leave the EU, says the Irish Times. In his speech, he argued that Northern Ireland should get special status following Brexit as it would have the biggest concentration anywhere of EU citizens outside the bloc’s borders, as its residents are automatically entitled to Irish citizenship. "I believe that some form of special economic zone status should be sought for Northern Ireland and those counties which involve the most North-South trade. However, this now appears unlikely," he said.
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KFC FRANCHISEE PLUNGES INTO THE RED WITH €45m LOSS - A major holder of franchises for the Kentucky Fried Chicken (KFC) brand in Ireland and the UK has seen its holdings in the Republic plunge into the red, with losses nearing €45m.
Newly-filed accounts for Herbel Restaurants (Ireland) show exceptional costs drove the €44.7m pre-tax loss in 2015. The exceptional costs relate to the writedown in value of the firm’s property portfolio, from nearly €95m to €47.45m, says the Irish Examiner. The latest accounts cover the eight months to the end of November 2015. In that time, Herbel (Ireland) recorded revenues of €9.6m. This compared to sales of €18.33m for the preceding 12-month period. A note attached to the accounts said the firm’s loans were sold by Ulster Bank and subsequently refinanced after the balance sheet date. It said the company, along with other group companies, has the necessary cash cover to meet its ongoing non-secured creditor obligations and liabilities for the foreseeable future.
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LONDON WILL STILL BEAT PARIS AFTER BREXIT, SAYS ARDIAN CHIEF - London will not lose out to Paris as a financial centre after Brexit because the French are "less financially minded" and do not possess the expertise found in the UK capital, according to a leading French business executive.
Dominique Senequier, the founder of Ardian, the Paris-based private equity company with $60 billion in assets under management, said French people might be good entrepreneurs and cooks but were unable to compete with the financial professionals to be found in London. Her comments follow a charm offensive led by France and other countries to lure companies, particularly banks, away from London after Britain voted to leave the EU, in case the City of London is no longer viable as a single European hub for their operations, writes the Financial Times. Once the UK is outside the EU, financial services companies could lose the "passporting" rules that allow them to operate across borders without local licences. Paris, which is the base for five of Europe’s 20 largest banks by assets, has been trying to woo more businesses across the Channel. Dublin has also been pitching itself as a natural base for financial services, while leading private equity companies are already applying for fund marketing rights out of Luxembourg as the sector seeks to ensure it will be able to continue operating in the EU post-Brexit.
