"If the tax rate increased, we would be relooking at our investment in Ireland."
Hewlett-Packard employs more than 4,000 people in Ireland, and multinationals' operations account for about 70 percent of the country's exports. "It would be counterproductive to raise taxes in the current environment," says Sylvain Broyer, chief euro-region economist at a bank group, Natixis, in Frankfurt. "They might have to adjust tax rates at some point but not during an emergency situation. It would be a grave mistake."
American Chamber of Commerce in Ireland backed by Bank of America Merrill Lynch (BAC), Hewlett-Packard (HPQ), Intel (INTC), and Microsoft (MSFT) warned the IMF, the European Central Bank, and the European Commission of the "damaging impact" on Ireland's "ability to win and retain investment" in the event that corporate taxes go up. "HP is very clear," Lionel Alexander, head of Hewlett-Packard's Irish operations, told Bloomberg Television. "If the tax rate increased, we would be relooking at our investment in Ireland."
Battered Ireland Clings to Its Low Taxes
Though the country needs $115 billion, it says its 12.5 percent corporate tax rate is "non-negotiable"
businessweek.com |
