Across the world, the ability of multinationals to exploit cracks in the international tax system has angered an austerity-weary public. But as policy makers draw up plans to close such gaps, the spotlight has fallen on the countries that help them pay less tax. Does it really make financial sense for Ireland to have a corporate tax rate of 12.5 per cent? Why are some American states looking to cut their corporate tax rates even as they struggle to pay for basic services? Why do countries compete instead of collaborate on tax?
As part of a new Financial Times’ series, the Great Tax Race, the FT’s taxation correspondent Vanessa Houlder was online on The World Blog on Tuesday and answered your questions about tax avoidance. Please see the comments section for her answers.
Here is a sample of some of the pieces in the series:
A protest in memory of Savita Halappanavar in November 2012 (Peter Muhly/AFP/Getty)
The first time a referendum on abortion was held in Ireland, it was 1983 and I was 12. Our local church in a small town in the south east was crowded and silent as the priest told those who supported the ‘right to abortion’ to leave now.
No one left, or if they did, I was too transfixed on the pulpit to see them go. If the Catholic church didn’t fight this, I remember the priest saying, then it would slide into irrelevancy, not much good for anything except perhaps fighting to save the whale. In those pre-environmentalist days, it was a reference that completely baffled me and I assume much of the congregation. Who wanted to save the whale?
Outside the church, there were people with collection tins and petitions. Later I remember a debate at my convent school; a teacher asked who agreed that abortion was murder and got a unanimous show of hands. A pro-life campaigner came to school and I remember not just the three foot foetus on the projector but also the scary realisation that anyone who did have an abortion would most likely end up in a wheelchair.
Nearly 30 years on and several referendums later, an inquest this week investigated the death of Savita Halappanavar, an Indian woman who died in an Irish hospital last October after a miscarriage. Her family say hospital staff repeatedly refused her requests for an abortion. A midwife told her an abortion was not possible because Ireland was a “Catholic country”. On Friday – what would have been her fifth wedding anniversary – the inquest found her death was by ‘medical misadventure’. Her husband said his wife’s treatment had been “barbaric and inhuman”.
Silvio Berlusconi, Reuters
Welcome to the FT’s live blog on the eurozone crisis. Curated by Orla Ryan and John Aglionby on the world news desk with contributions from correspondents around the world. In Italy, doubts have emerged that Silvio Berlusconi can remain in power as the country’s borrowing costs continues to rise. Greece is expected to name a new leader after its two largest political parties late on Sunday decided to form a government of national unity. George Papandreou will stand down as prime minister.
18.24: That’s it for the live blog for today. For news and analysis of events in Greece, Italy and the rest of the eurozone, visit www.ft.com.
18.19: Before we wrap up the live blog, here is a summary of the day’s key events:
Silvio Berlusconi is still prime minister of Italy, despite a flurry of rumours and speculation that he would step down today. Italy’s stock and bond markets endured a volatile session, with borrowing costs continuing to rise. Fears remain that Italy will be the next casualty of the eurozone crisis.