Tax Inversions Boost Ireland’s GDP
July 14, 2016 Taxation in Ireland
DUBLIN – Tax optimization strategies used by the world’s biggest companies have boosted Ireland’s economy by 26 percent.
New data released by the Irish Central Statistics Office shows that in 2015 the national GDP rose by 26 percent, due primarily to an increased number of tax inversion.
The economy was previously forecast to rise by 7.8 percent over the course of 2015, however, the revision was made on the back of “more complete and up-to-date data”.
The dramatic increase came as a growing number of international businesses reallocated their operations to Ireland, effectively moving their entire net-worth, capital, and assets to Ireland.
Further, the increase was supported by an unexpectedly high level of aircraft imports through international leasing and corporate re-classifications.
The majority of the GDP increase came predominantly in the first quarter of the year, when GDP rose by 21.4 percent, while in the 3rd and 4th quarter the GDP rose by 3.1 percent and 2.3 percent respectively.
Despite the mass increase through corporate structuring, personal consumption in Ireland in 2015 rose only by 4.5 percent.
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