Advertisements

Ireland The Corporate Tax Haven

Comments Off on Ireland The Corporate Tax Haven

Despite what Irish Taoiseach Enda Kenny says, IRELAND IS A TAX HAVEN how else do you explain the following:

Company Income Tax Paid Rate
Apple €17bn €8m 0.05%
Google €9bn €22.2m 0.25%
Facebook €1bn €3.2m 0.33%

Meanwhile Irish tax payers pay over 50% income tax (income +USC) if earning above €33k. Not only is income tax being increased by stealth (reducing tax credits and increasing numbers paying taxes) but also new taxes are being introduced such as the property tax and water tax. What a sweet deal the big corporates have.

Advertisements

AIB (Allied Irish Bank) Operating Without A Banking Licence. Opps!

Comments Off on AIB (Allied Irish Bank) Operating Without A Banking Licence. Opps!

Who would have thought it that AIB has been operating in Ireland without a banking license according to Reggie Middelton. This just sums up what a mess the Irish banking system is in.

Since I started my series on the Irish banks, there’s been an outpouring of sympathizers, empathizers, consultants and analysts who have joined in to contribute information, data and insight to the efforts. Below is a contribution from a reader on his experience with AIB (see Global Banking Crisis – How & Why YOU Will Get “Cyprus’d” and As If On Cue, BoomBustBlog Shenanigan…). I have not verified the information contained herein, nor do I endorse it or it author. It is presented here for information purposes only.

Enjoy!


Tom Darcy

 The premise for my allegations came after a newspaper article was published on the 22nd of April 2012; Judge Mc Govern gave possession of my family home to AIB. The article in the Sunday Independent outlined the loss of my two brothers and mum and business. I asked publically for help and information, the response was overwhelming, one report was from an insider in the AIB who directed me to the Annual Banking Licence application form issued by the Central bank under the 1941-1989 Acts, which all Irish banks and international Banks trading in Ireland require. It became instantly clear that the bank had committed numerous criminal Acts in obtaining their Banking licence, as my statement to An Garda (Irish Police) shows below.

I immediately investigated the AIB financial records 2006-2009 and identified stark anomalies and omitions, all contrary to company law, but more important contrary to their legislative obligations in the renewal of the Banking Licence. So I added that in my appeal affidavits in the high courts of Ireland that the AIB had no locus standi (can send affidavits dated from 29th of June 212) finally on the 21st of January some eleven weeks ago Judge Dunne directed me to report to police. I also sought Sine Fein to put by way of parliamentary question to Minister Michael Noonan the issue of illegality of banking Licences, Michael Noonan went as far as accepting that the IBRC had no valid Banking licence (which is a criminal Act) that was published in the Nama report.

____________________________________________________________

I Thomas Darcy an Irish citizen aged eighteen years and older of 21 Myra Manor Kinsealy Co Dublin, Make this Statement of facts upon which I believe to be the truth.

I state the AIB plc as registered on the 21st of May 1997 in the companies office and holding themselves as conducting or being willing to conduct the business of banking in the Irish state subject to the statute law and regulations imposed by Central Bank of Ireland Acts of 1941-1989 and Company laws of 1963-2010 and the laws of this Irish state operated a Financial Institution for the periods between 2006- 2007-2008-2009 in contravention of the said laws. 
I state the AIB plc operated without a perfected Banking Licence in contravention of the Central Bank Acts of 1941-1989 and further state the AIB plc on renewal of its legislated Annual Banking Licence with intent materially concealed and dishonestly omitted facts by false and misrepresentation in which to obtain said Banking licence.
I state the AIB plc contravened its legislated obligation to deposit securities to the Central Bank of Ireland in respect to its loan to deposit ratios and liquidity ratios under the Central Bank Acts of 1941-1989 on renewal of its Banking licence in accordance with statute law. I state the AIB plc with intent criminally ignored its mandatory obligation to inform the Central Bank of Ireland of Material facts and changes to its status and exposure as a Financial Institution as set forth in the Central Bank Acts of 1941-1989.
I state the omission of the aforementioned legislated securities and material changes were not reflected in the annual financial records of 2006-2007-2008-2009 by the AIB plc.
I state the AIB plc with intent contravened Company Law of the Irish State by omitting and concealing its mandatory obligations to produce a True annual financial reflection of its status. I state the AIB plc contravened its Memorandum and Articles of Association under Company law and statute law by issuing a false and misleading set of financial records to its shareholders for the periods of 2006-2007-2008-2009. I state the AIB plc was required by statute law to inform its shareholders of all material changes and exposures to the status of the company as required by law and with intent failed to do so. I seek An Garda Siochana to enforce the laws of this country as set forth in our enacted Constitution dated the 1st of July 1937 and bring criminal charges against the AIB plc its Directors and agents for the breaches and violations of the laws of this state.

Since then, a reader of Reggie Middelton came forward with the following nugget of information on AIB’s licence or lack there of.

Hi Reggie,

Attached and below a email from Aib Kathleen Clifford she is the assistant to Aib’s risk director.

The licence has correct company number but Aib Limited was restructured into Aib plc 1982 and doesn’t have any Government or Central Bank stamp?

Below are some the Irish criminal laws breached by AIB plc

Also their ability to trade outside Ireland is dependent on them having a Ratified Irish licence therefore their USA and Eu operations may not be legal.

False claims in performances 
False representation 
Misrepresentation to Central Bank
Fraudulent application or use 
Concealing facts disclosed by documents
Suppression of documents 
False statements to shareholders
Falsification of Financial records 
Liability of officers in respect to financial records 
Furnishing false information 
Operating a Financial institution with out a valid Banking Licence

Everyone a criminal offence.


AIB Banking Licence

Source:

Reggie Middelton: Irish Banking System Is The Next Cyprus

Comments Off on Reggie Middelton: Irish Banking System Is The Next Cyprus

Reggie Middelton has analyized the Irish Banking system and his findings are disturbing. Since 2008 not only were debts hidden and assets double counted for the stress tests but banks have had to pledge all assets to access the TARGET2 system which is completely abnormal. All the while, silence from the Irish media. It looks more and more like Ireland is going to “pull a Cyprus”.

More Oil Off Irish Coast

Comments Off on More Oil Off Irish Coast

Just like Cyprus, Ireland is strongly suspected to have huge oil and  gas reserves off the Irish coast. In fact many test wells confirmed such was the case but have been capped for a later date. A quick look at Providence Resources web pages confirm that discoveries as far back as 1981 have been capped for a later date:

The discovery well (35/8-2) was drilled by a consortium led by Phillips Petroleum (and included Atlantic Resources, the predecessor company to Providence) in 1981 and flowed c. 1,000 BOPD and c. 5 MMSCFGD from one of four logged payzones of Upper Jurassic age. Post-drill analysis by Phillips suggested that while the discovery could contain resources of up to 1.1 TSCFG and 112 MMBO, it was deemed uneconomic due to a combination of low commodity prices, high production costs and lack of gas infrastructure in Ireland at the time. Providence commissioned a series of independent reports which suggested that the field contains estimated contingent resources (2C) of 1.4 TSCFG and 160 MMBO with significant upside potential both within the field and in adjacent prospects.

Now Exxon is looking to exploit further its Dunquin field as reported in the Irish Independent.

Oil giant ExxonMobil kicks off a $160m-plus (€125m) drilling programme off the west coast of Ireland this weekend with hopes that confirmation of major fossil fuel reserves will transform the country’s economy.

The US company is planning to drill test wells over a four-month period at two prospects at the Dunquin licence area in the Porcupine Basin, 200km off shore.

Previous data has suggested that there could be over 300 million barrels of oil and 8.5 trillion cubic feet of gas between the two Dunquin prospects.

If they could be proven and then extracted, such finds would mark one of the biggest ever global discoveries of oil and gas and be a game-changer for Ireland’s economic fortunes.

Interestingly TPTB and the lamestream media like to spin it that its a long shot, as follows :

But despite the 200 or so wells drilled off Ireland’s shores in the past number of decades, only two have resulted in commercial fields – Kinsale and Corrib.

but the 1981 Spanish Point discovery does confirm that a lot of wells are being sat on until its commercially viable. It makes sense for the large oil companies to exploit the easy finds first or indeed to carve up deals to get access to other countries as spoils of war.

Also the Department of Communications, Energy and Resources estimates that a total reserve potential of over 10 billion barrels of oil equivalent (bboe) of the west coast of Ireland. The Corrib field alone is worth €9.5 billion. This does not even take into account the areas in the South, East or the disputed Rockall in the North which are long known to hold oil. SIPTU created a very interesting report as to Ireland’s potential.

Many other oil companies will be watching.

Located at a point in the Atlantic where the ocean is 1.6km deep, ExxonMobil’s drilling programme is being eagerly watched by oil companies from abroad and Ireland, including Petrel Resources, which has an exploration block just 35km away from the Dunquin prospect.

ExxonMobil controls 27.5pc of the Dunquin prospect, with Italian firm Eni holding another 27.5pc.

Spanish energy firm Repsol owns 25pc and UK-based Sosina has a 4pc interest. Irish exploration firm Providence Resources has a 16pc interest in the prospect. A major oil or gas find could catapult its shares higher.

The Dunquin prospect – where the reserves are as deep as 3.6km under the seabed – is one of the most important exploration areas for Providence, which is headed by Tony O’Reilly Jnr.

Providence is also betting that it could have a major oil find on its hands at a site called Barryroe, which is close to the Kinsale field. The company reckons that there could be 280 million barrels of recoverable oil at the Barryroe prospect.

ExxonMobil has spent $20m to bring the exploration rig from west Africa to Ireland’s waters. The rig is owned by Norwegian group Ocean Rig. ExxonMobil will spend over $1m a day on the drilling activities, which are expected to last between 90 and 120 days.

The Department of Transport has already issued a warning to shipping in the area. It says that the semi-submersible rig, called the Eirik Raude, will be supported by supply vessels operating out of the port of Cork.

A 500-metre exclusion zone will be enforced around the rig for the duration of the drilling.

“All vessels, particularly those engaged in fishing, are requested to give the Eirik Raude a wide berth and keep a sharp lookout in the relevant area,” said the department.

The port of Cork is also hoping that it could become an epicentre for Ireland’s oil-and-gas industry if offshore reserves are proven.

 

Ultimately to understand how corrupt Irish politicians have given the countries reserves away, basically for free, the following link explains all.

http://irishoilandgas.wordpress.com/2012/02/07/frontline2/

Source: Irish Independent

Ireland to Sell 80Yrs of Harvesting Rights To Its Forestry, To Save 3 Weeks Of Interest Repayments

Comments Off on Ireland to Sell 80Yrs of Harvesting Rights To Its Forestry, To Save 3 Weeks Of Interest Repayments

As a condition of the IMF/ECB/EFSF “Troika”  loan for the amount of  €67.5bn Ireland must generate €2 billion from the disposal of State-owned assets and companies. As part of this, the government has plans to sell off the harvesting rights to the states forestry for the next 80 years.

The proposed €600 million that they will receive would pay off 0.4% of the national debt currently standing at €140bn, or to put it another way, 3 weeks loan interest on the national debt.  The Irish Timber Council said the proposed sale could lead to the closure of all ten of Ireland’s sawmills with the loss of 2,500 jobs. Coillte the public body in charge of the forests which accounts for 7% of the landmass of Ireland employes over 12,000 people whose jobs are at risk. The amount raised would potentially be only half of what the country would lose in lost earnings, redundancies and costs of replacing the trees.

How ironic that Labour, one of the government parties looks to have backtracked on another promise. In their election manifesto (p36) , Labour had a commitment to forestry as follows

labour

 

Thank you IMF 😦

IMF-and-debt

Exports Keep Ireland Alive For Now

Comments Off on Exports Keep Ireland Alive For Now

Ireland maybe on the verge of an EU deal to push out debt payments for 12 to 15 years but it has been its exports that have managed to keep the nation afloat. In fact exports make up to 106% of GDP which has enabled it help trade its way out of the crisis in spite of the harsh austerity that has been imposed.

Ireland will export as much as India this year, and more than Brazil, fruit of an industrial policy dating back to the early 1990s that has made the country a hub for global pharma, software, medical equipment, and financial services. It will rack up a very German current account surplus above 4pc of GDP.

Exports make up 106pc of GDP, compared to 35pc for Portugal, 30pc for Spain 30pc, 29pc for Italy, and 21pc for Greece. Ireland has a much higher trade gearing than Club Med peers, and that is what has kept the country afloat despite a 26pc collapse in domestic demand. Growth was 1.5pc in 2011 and 0.9pc in 2012, better than the EU average.

The export story is by now well-known. The global drug giants almost all have plants in Ireland, employing 44,000 people and producing half the country’s merchandise exports, though this may be losing its edge. The country is facing a “Patent Cliff” as a clutch of drugs – such as Pfizer’s statin pill Lipitor – come off patent in the US. It is the reason why Irish exports slipped 15pc in December.

Microsoft, Google, Facebook, Twitter, and a host of household names have regional headquarters in Dublin, whether drawn by a corporation tax of 12.5pc or by the critical mass of a high-tech skills. How much value is added to the Irish economy is an open question. Google rotates some 45pc of its global revenues through Ireland under transfer pricing schemes.

Even so, Ireland is clearly a different animal from the Greco-Latins. It never had a seriously misaligned currency within EMU. It had a misaligned monetary policy that set off a credit bubble. Real interests set in Frankfurt averaged minus 1pc from 1998 to 2007 (compared to plus 7pc in the early 1990s). As Irish eurosceptics foretold, the effects were ruinous.

The country has since deflated the froth. The gap in unit labour costs with the EMU-core has been closed again, at least on paper. “We have cut costs right through the economy with an internal devaluation of 15pc or 16pc,” said Mr Noonan.

One can quibble with the claims. Nearly all the gain in labour costs has been in the non-tradeable public sector – nurses, policemen, teachers – where wages have been slashed 14pc, with another 5.5pc to come. Productivity levels have been flattered by the annihilation of the building industry. “Private wages have declined only modestly,” says the IMF in its latest report.

Yet the point remains that Spain has not begun to see this level of deflationary shock. Were it to try with such a closed economy, it would tip into free-fall, push the jobless rate above 30pc, and cause the debt trajectory to spin out of control. As for Italy, its unit labour costs rose as fast as Germany’s last year. Its deflation lies ahead.

Ireland not out of the woods yet!

Club Med can take no comfort from Ireland’s success, but is even Ireland itself out of the woods? The budget deficit is still 8pc of GDP five years into the ordeal, and public debt is already nearing the limits of viability at 121pc of GDP this year.

Dublin has pencilled in a 3pc deficit by 2015, but dissidents say 6pc is more likely. The IMF warns that a “stagnation” scenario of 0.5pc growth a year into the middle of the decade would cause the debt ratio to spiral up to 146pc by 2021.

That is a serious risk as Europe persists in botching macro-economic policy, and US austerity threatens the fragile world expansion later this year.

Investment has collapsed to 10pc of GDP.

This is the lowest in recorded Irish history and the currently the lowest in the EU. “If this does not recover over the next couple of years, I’ll be worried”, said Rossa White from the National Treasury Management Agency.

Indeed, it is the crux of the matter. Spending has been slashed through the muscle and into the bone. This presumably is what Laszlo Andor, the EU employment commissioner, was talking about last week when he decried a slash-and-burn policy in the name of competitiveness that is tipping the crisis economies into a “downward spiral” and making it even harder to cut control debts. Are his colleagues in the Berlayment listening to him?

A mass exodus of 40,000 to 50,000 each year to the four corners of the Irish Diaspora have kept unemployment down to 14.1pc, but 60pc of those left on the rolls have been out of work for over year — the highest rate in Europe — and that is where the “hysteresis” effects of lasting damage bites hardest. It steals from growth from the future by degrading work skills.

Troika has done more damage to Ireland than the English ever did in 800 years.

Irish trade union chief David Begg was speaking with poetic licence last week when he accused the Troika of doing more damage to Ireland than the British Empire ever did in eight hundred years, snapping that the English had at least left some “beautiful Georgian buildings.” Needless to say, he has not forgotten the Wexford massacre and the potato famine, and nor have we at this newspaper. Yet he made his point.

“When we meet the Troika, we tell them that austerity is not working, and they tell us that it is. It is a dialogue of the deaf,” he said.

Mr Begg said he had come to realise that EMU is constructed in such a way that the “entire burden of cost adjustment” falls on workers if there is macro-shock. He is right. An internal devaluation is achieved by forcing unemployment to such excruciating levels that it breaks the back of labour resistance to pay cuts. It is the polar opposite of a currency devaluation that spreads the pain. Note that Iceland’s unemployment is just 5.4pc today, and Britain’s is 7.7pc.

“Such a callous disregard for distributional justice – which we have witnessed in this country over the last five years – is a fatal flaw,” he said.

“For much of its history, European integration has proceeded on the basis of a ‘Permissive Consensus’. European citizens thought it was a good thing, or at least did no harm. I doubt that view is still current. From what I hear in the circles in which I move, today’s labour movement is disaffected from the European project,” he said.

“What will happen when people eventually realise that they are trapped in a spiral of deflation and debt. We may reach the tipping point,” he said.

Europe’s labour movement is the dog that has not barked in this long crisis. Bark it will.

Source: Irish Independent

Your Banks Mess Up, But Its Your Fault

Comments Off on Your Banks Mess Up, But Its Your Fault

Wolfgang Schauble, Germany’s Finance Minister is not one for holding back when it comes to pointing out the ills of other countries. Schauble has clearly laid the blame for Ireland’s bank collapse at the hands of the Irish. While partly this is true, he neglects the enormous part played by the ECB. It was the ECB’s interest rate decisions which Schauble’s Germany benefited from, that caused credit bingeing countries all their problems. He also neglects the ECB’s decision to force the Irish taxpayer to pay back gambling bondholders and help keep German banks afloat.
If that’s the best analysis Schauble can do regarding Ireland then God help the German taxpayers because I wouldn’t trust this lawyer to run my finances. When it comes to German banks exploding, Schauble’s attitude is, it’s never the banks fault. I woudn’t fancy been forced to bail out German banks along with bailing out the rest of Europe.
Wolfgang Schauble, Germany’s powerful federal minister for finance, has said it is all Ireland’s fault its banks collapsed, plunging the economy into a deep recession, and absolves reckless European bondholders of all blame.

In a frank interview for a new documentary called State Secrets and Bank Bailouts, Schauble dismisses claims that European bondholders should be made share in the responsibility for unsustainably pumping up Ireland’s banking system with billions.

“The cause in Ireland is something Ireland itself created – not Luxembourg, not France, not Germany, but Ireland – and it benefited from it for some time,” Schauble claims.

“Then everyone has to bear the consequences of a wrong-headed policy.”

In the documentary, presenter Harald Schumann, a former editor of Der Spiegel, asks Schauble to publish a list of the bondholders who cashed in from the German-backed decision by the European Central Bank not to make them bear the cost of banking recklessness but instead to shift this bill on to the citizens of peripheral European states like Ireland.

“Why don’t you publish a list of creditors so we can have an informed debate about it?” he asks. Schauble dismisses this view as being “naive.”

“[Banks are] very intermingled. And if one bank is not solvent anymore, then it will immediately trigger doubts about the solvency of the next bank because it may have credit at the other,” Schauble states.

“Everyone should solve their own problems. If everyone swept in front of their own door, the whole neighbourhood would be clean,” the German politician added.

“The Irish were very aware that their banks were less stringently supervised then the German banks,” he said.

Most economic common sense in Ireland unfortunately comes from independent politicians (the mainstream politicians are the best money can buy). In this case Stephen Donnelly easily dismisses Schauble’s argument.

In this major documentary, independent TD Stephen Donnelly disputes Schauble’s views of the Irish crisis, which are widely accepted in Germany.

“The gun was held by the European Central Bank,” Donnelly states, “The suspicion is that the European Central Bank said you will continue to pay these bondholders to whom you owe nothing or we will pull the emergency funding out of your banking system. Thereby collapsing your banking system, thereby collapsing your economy. To me, that is gunboat diplomacy.”

Former finance minister Brian Linehan backed up Donnellys claim before he died stating that Trichet made him bail out the bondholders. Even current finance minister Michael Noonan claims to have the letter from the ECB forcing Ireland to bailout the banks at the taxpayers expense, otherwise emergency liquidity would be withdrawn.

Source: Irish Independent

Older Entries

%d bloggers like this: