HT Image
HT Image

Irish corporate tax in focus as bailout deal nears

French President Nicolas Sarkozy said on Saturday he expected Ireland to raise its corporate tax rate but added that an increase would not be a condition for any bailout.
By HT Correspondent | Reuters, Lisbon/dublin
UPDATED ON NOV 21, 2010 02:20 AM IST

French President Nicolas Sarkozy said on Saturday he expected Ireland to raise its corporate tax rate but added that an increase would not be a condition for any bailout.

International Monetary Fund and European Commission officials are in Dublin to discuss financial aid to help Ireland cope with its struggling banks, whose huge liabilities have sent Irish borrowing costs soaring.

The main concern for EU policymakers is that Ireland's problems will spread to other euro zone members with large budget deficits such as Spain and Portugal, threatening a systemic crisis.

Euro zone states want Ireland to raise its 12.5% corporate tax rate as part of any deal but Dublin argues the low rate is crucial to attracting foreign investment.

Sarkozy, speaking at a news conference in Lisbon on the sidelines of a NATO summit, said he expected Ireland to raise its corporate tax rate.

"It's obvious that when confronted with a situation like this there are two levers to use: spending and revenues," he said.

"I cannot imagine that our Irish friends, in full sovereignty, (would not use) this because they have a greater margin for manoeuvre than others, their taxes being lower than others".

"In the conditions for activating the (bailout) mechanism, there are no fiscal demands," he added.

The Irish Times newspaper reported that Ireland's four-year plan to reduce its deficit would be published on Tuesday, before any international financial aid package was ready.

Last month, Ireland doubled to 15 billion euros ($21 billion) the sum it calculated was needed to bring its deficit under control by 2014.

Finance Minister Brian Lenihan said this was designed to ensure Ireland would not need a bailout but it failed to calm jittery markets.

Ireland's central bank chief acknowledged this week the country needed a loan running into tens of billions of euros to shore up a banking sector that has grown dependent on ECB funds and seen an exodus of deposits over the past six months.

Cabinet to meet
The Irish Times said the government -- deeply unpopular and hanging on to a tiny parliamentary majority -- had pushed forward the publication date for its four-year plan so it could be identified as a programme drawn up by the government rather than one driven by the European Union or the IMF.

The newspaper said the plan would be published on Tuesday, citing unnamed senior Irish officials. A government spokesman said only the plan would be published early next week.

An international aid package is expected to be announced shortly afterwards.

"The cabinet will meet tomorrow to sign off on the 160-page document which charts how the state will reduce its outgoings," the Irish Times said, adding a separate plan for restructuring the bank sector was also expected to be finalised this weekend.

Sources have told Reuters that Ireland may need assistance of between 45 billion and 90 billion euros, depending on whether it needs help only for its banks or for public debt as well.

Systemic risk
Markets calmed in recent days after it became clear Ireland was on track to receive aid, but remained jittery on Friday.

The euro briefly pushed above $1.3720, but fell back to $1.3660 in late European trading. The spreads of Irish 10-year bonds above German benchmarks drifted down towards 5.4%age points before pushing back up to 5.6 points, dragging Greek, Portuguese and Spanish debt alongside.

ECB policymaker Lorenzo Bini Smaghi told the weekly Die Welt am Sonntag that the costs of any bailout could increase if Dublin needs financial aid but delays in asking for it.

"This risk in fact grows with time -- we have seen this already with Greece. There is also danger that contagion spreads to other highly indebted euro zone countries," he said.

"If the financial markets see that Europe is having a hard time to resolve a problem quickly, they could seek out a new victim," he added.

Britain repeated its readiness to help because of its strong economic links with Ireland and Sweden said it could help too.

"There could be some bilateral help. We are waiting to hear more from the Irish government," Swedish Prime Minister Fredrik Reinfeldt told RTE.

"We feel that we are very close to Ireland and are always ready to listen and help if we can do so," he said.

Funds for Ireland are likely to come from a safety net fund set up after the EU bailed out Greece earlier this year.

Prime Minister Brian Cowen's razor-thin parliamentary majority could be cut even further if, as expected, his Fianna Fail party loses a seat in a special election next week.

Support for Fianna Fail has fallen to 17%, according to a Sunday Business Post/Red C poll, a result that would cost the party more than half its MPs if repeated in a general election.

Union leaders said the public was already angry over the government's austerity cuts and any further measures to be announced on Tuesday could prove a tipping point.

"The talk now is of the budget, and effectively destroying the social welfare system. I think there is going to be huge civil unrest as a result of that," TEEU union leader Eamon Devoy told Reuters.

Unions plan a Nov. 27 protest march against austerity measures imposed to rescue the state's finances and one has called for a campaign of civil disobedience if the government fails to call an election.

SHARE THIS ARTICLE ON
Close
According to the Rural Health Survey 2018-19, there is an 85.6% shortfall of surgeons, 75% deficit of obstetricians and gynaecologists, 87.2% of physicians, and 79.9% shortfall of paediatricians in the primary health sector in rural areas.
According to the Rural Health Survey 2018-19, there is an 85.6% shortfall of surgeons, 75% deficit of obstetricians and gynaecologists, 87.2% of physicians, and 79.9% shortfall of paediatricians in the primary health sector in rural areas.

How govt plans to push health spending to target of GDP’s 2%

By Zia Haq, Hindustan Times, New Delhi
UPDATED ON MAR 08, 2021 06:02 AM IST
  • Despite decades of strong economic growth, the country’s spending on health care is barely 1% of GDP, way below Brics peer nations, resulting in serious supply-side deficits of facilities and professionals.
Close
Aditya Birla Capital, whose current market cap is <span class='webrupee'>₹</span> 30,000 crore, derives a majority of its market value ( <span class='webrupee'>₹</span>13,000-14,000 crore) from the AMC business alone.(Abhijit Bhatlekar/ Mint)
Aditya Birla Capital, whose current market cap is 30,000 crore, derives a majority of its market value ( 13,000-14,000 crore) from the AMC business alone.(Abhijit Bhatlekar/ Mint)

Birla Sun Life plans to raise 5,000 crore via share sale

By Anirudh Laskar, Hindustan Times, Mumbai
UPDATED ON MAR 07, 2021 11:54 PM IST
  • Aditya Birla Sun Life Asset Management has started talks with potential merchant bankers for the IPO, which is likely to be launched in the June quarter, said the people cited above.
Close
To put the scale in context, market leader Hero MotoCorp produced 6.5 million two-wheelers annually.(Hemant Mishra/Mint file photo)
To put the scale in context, market leader Hero MotoCorp produced 6.5 million two-wheelers annually.(Hemant Mishra/Mint file photo)

Ola aspires to pull off a Tesla, but affordably

By Madhurima Nandy, Hindustan Times, Bengaluru
UPDATED ON MAR 07, 2021 11:42 PM IST
  • The Bengaluru-based firm plans to start production as early as in June. That’s audacious, given that the land—260 acres for the plant and 240 acres for two supplier parks—is still in excavation mode.
Close
The Arbitral Tribunal, in a ruling by former Chief Justice of India AM Ahmadi on March 6, ordered the document to be binding.(File photo)
The Arbitral Tribunal, in a ruling by former Chief Justice of India AM Ahmadi on March 6, ordered the document to be binding.(File photo)

Zostel claims victory in legal row with OYO

By Tarush Bhalla, Hindustan Times, Bengaluru
PUBLISHED ON MAR 07, 2021 11:37 PM IST
  • The term sheet executed between the two parties in 2015, promised ZO Rooms’ shareholders 7% of Oyo.
Close
The government, which owns 54% in BEML, invited expressions of interest for the stake sale in the defence equipment maker, along with the transfer of management control, on January 4.(Reuters File Photo)
The government, which owns 54% in BEML, invited expressions of interest for the stake sale in the defence equipment maker, along with the transfer of management control, on January 4.(Reuters File Photo)

Suitors make a beeline for 26% stake in BEML

By Malyaban Ghosh, Utpal Bhaskar
PUBLISHED ON MAR 07, 2021 11:32 PM IST
  • Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd may also submit expressions of interest for the government’s stake in BEML, the people said on condition of anonymity.
Close
The survey has been conducted against the backdrop of the economy coming out of recession in Q3 with 0.4% growth, after remaining in contraction mode for two consecutive quarters.
The survey has been conducted against the backdrop of the economy coming out of recession in Q3 with 0.4% growth, after remaining in contraction mode for two consecutive quarters.

Biz confidence at India Inc soars to 10-year high

By Rajeev Jayaswal, Hindustan Times, New Delhi
PUBLISHED ON MAR 07, 2021 11:24 PM IST
  • The survey captures the mood of the industry for the two quarters ending June 30, 2021.
Close
Union Minister for Road Transport &amp; Highways and Micro, Small and Medium Enterprises Nitin Gadkari interacts with media. (PTI File Photo)
Union Minister for Road Transport & Highways and Micro, Small and Medium Enterprises Nitin Gadkari interacts with media. (PTI File Photo)

Junk your old car, get 5% rebate from automakers on new purchase: Gadkari

PTI, New Delhi
PUBLISHED ON MAR 07, 2021 10:29 PM IST
Nitin Gadkari said, automated fitness tests will be set up under public private partnership (PPP) mode while the government will assist private partners and state governments for scrapping centres.
Close
The accused stole over 5kg of gold and 9kg of silver ornaments worth <span class='webrupee'>₹</span>2.82 crore. (HT Photo)
The accused stole over 5kg of gold and 9kg of silver ornaments worth 2.82 crore. (HT Photo)

Gold prices down over 20% from highs. Should you invest?

By hindustantimes.com | Written by Meenakshi Ray, New Delhi
PUBLISHED ON MAR 07, 2021 06:40 PM IST
Gold has been falling for the past few months and has lost more than 20% in value from the highs witnessed in August last year.
Close
Of the total investment made by Indian companies in foreign markets, USD 1.36 billion was in the form of loan; USD 297.37 million comprised as equity investment and the rest of USD 183.82 million was by way of issuance of guarantee, according to the RBI data on outward foreign direct investment (OFDI) - February 2021.(REUTERS)
Of the total investment made by Indian companies in foreign markets, USD 1.36 billion was in the form of loan; USD 297.37 million comprised as equity investment and the rest of USD 183.82 million was by way of issuance of guarantee, according to the RBI data on outward foreign direct investment (OFDI) - February 2021.(REUTERS)

RBI: India Inc's overseas direct investment falls by 31% to USD 1.85 billion

PTI, Mumbai
PUBLISHED ON MAR 07, 2021 06:27 PM IST
Domestic companies made investments of USD 2.66 billion in their overseas subsidiaries and joint-ventures in the year-ago month, February 2020.
Close
Budget deficits in the Arab Gulf, where economies are reliant on oil, widened after prices crashed.(Reuters)
Budget deficits in the Arab Gulf, where economies are reliant on oil, widened after prices crashed.(Reuters)

OPEC+ surprise sees oil soar past Gulf’s budget-balancing Levels

Posted by Harshit Sabarwal | Bloomberg
PUBLISHED ON MAR 07, 2021 06:27 PM IST
The shock move by OPEC+ triggered a rally in Brent prices, which rose to almost $70 a barrel. That’s higher than annual average levels needed for the cartel’s largest producers, including Saudi Arabia, to balance their budgets this year.
Close
Elon Musk’s tumble only underscores the hard-to-fathom velocity of his ascent.(REUTERS)
Elon Musk’s tumble only underscores the hard-to-fathom velocity of his ascent.(REUTERS)

Elon Musk’s historic wealth gains unravel with $27 billion loss

Bloomberg
PUBLISHED ON MAR 07, 2021 05:04 PM IST
Musk’s fortune hasn’t been solely subject to the forces buffeting the tech industry. His net worth has risen and slumped recently in tandem with the price of Bitcoin.
Close
WhatsApp helpline is now functional in all the 138 regional offices of EPFO.(HT File Photo)
WhatsApp helpline is now functional in all the 138 regional offices of EPFO.(HT File Photo)

How to check PF balance without Universal Account Number

By hindustantimes.com | Edited by Ayshee Bhaduri, Hindustan Times, New Delhi
PUBLISHED ON MAR 07, 2021 02:49 PM IST
  • For checking EPF balance without UAN number, users will need to log into their account through the EPF homepage at epfindia.gov.in.
Close
Union minister of state for finance and corporate affairs Anurag Thakur on Saturday addressed the Punjab chapter of Entrepreneurs Organisation. (ANI File Photo )
Union minister of state for finance and corporate affairs Anurag Thakur on Saturday addressed the Punjab chapter of Entrepreneurs Organisation. (ANI File Photo )

On cryptocurrency, Anurag Thakur says ‘innovation welcomed, must evaluate ideas’

By hindustantimes.com | Written by Kanishka Sarkar, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 09:09 PM IST
Anurag Thakur’s remark comes days after the Reserve bank of India (RBI) governor Shaktikanta Das flagged “major concerns” about the impact of cryptocurrencies on financial stability.
Close
The chairman of the 15th Finance Commission NK Singh(Sonu Mehta/ HT Archive)
The chairman of the 15th Finance Commission NK Singh(Sonu Mehta/ HT Archive)

Opted for continuity in deciding tax devolution to states: FC chairman N K Singh

PTI
UPDATED ON MAR 06, 2021 07:39 PM IST
  • The 15th Finance Commission has recommended that states be given 41 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.
Close
Other than tax-saving investments, taxpayers also need to complete other tax-related tasks in order to avoid penalties.(Reuters)
Other than tax-saving investments, taxpayers also need to complete other tax-related tasks in order to avoid penalties.(Reuters)

From ITR to PAN-Aadhaar linking: Tax-related tasks to complete before March 31

By hindustantimes.com | Edited by Mallika Soni
UPDATED ON MAR 06, 2021 04:45 PM IST
  • Here’s a list of some of the tasks which need to be performed by taxpayers before March 31
Close
SHARE
Story Saved
OPEN APP