Feargal O'Rourke facts for kids
Quick facts for kids
Feargal O'Rourke
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Feargal O'Rourke in 2014
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| Born | 3 August 1964 |
| Nationality | Irish |
| Education | Marist College, Athlone |
| Alma mater | University College Dublin |
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| Known for | Creating the Double Irish arrangement |
| Title | Managing partner, Ireland (July 2015) |
| Spouse(s) | Maeve O'Rourke |
| Children | 2 |
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Feargal O'Rourke (born 3 August 1964) is an Irish accountant and expert in company taxes. He used to be the managing partner for PwC in Ireland. He is well-known for creating a tax plan called the Double Irish arrangement. This plan was used by big American companies like Apple, Google, and Facebook that have offices in Ireland.
O'Rourke helped these companies set up ways to manage their taxes. His work helped shape how US companies handle their taxes in Ireland. A journalist named Richard Brooks wrote about O'Rourke's work in a book in 2018. Brooks mentioned how O'Rourke helped remove certain taxes in Ireland in 2010. This made it easier for companies to move money around without paying as much tax.
The European Union (EU) later fined Apple €13 billion. This was because of the way Apple used the Double Irish tax plan in Ireland. The EU said Apple avoided paying taxes from 2004 to 2014. This was the biggest company tax fine ever. O'Rourke's company, PwC Ireland, actually helped the Irish government defend its tax rules during the EU's investigation into Apple.
O'Rourke doesn't agree with being called a "tax haven" expert. He believes Ireland plays by the rules. He has said that Ireland shouldn't be responsible for how the US writes its tax laws. He thinks the US can change its own laws if it wants to.
However, other experts have different opinions. Jim Stewart, a professor at Trinity College Dublin, said that O'Rourke and other accountants create tax plans that cause billions of dollars in lost tax money for other countries. He called O'Rourke a "very aggressive leader" in the tax planning industry.
In October 2013, O'Rourke predicted that the Double Irish plan would end. It was indeed closed to new companies in January 2015. New tax plans then took its place. These included the Single Malt scheme, used by companies like Microsoft. Another was the Capital Allowances for Intangible Assets (CAIA) scheme, which Apple used in 2015. O'Rourke had suggested expanding tax allowances for things like patents and trademarks in 2009. This led to the CAIA tax plan being created.
Understanding Company Tax Rates
In January 2014, Feargal O'Rourke publicly defended Ireland's tax plans. This happened when the US Bureau of Economic Analysis (BEA) showed that companies in Ireland were paying very low effective tax rates (ETRs). These rates were between 2.2% and 3.8%. This made people around the world question if Ireland was a tax haven.
O'Rourke argued that Ireland's actual tax rate was closer to its official rate of 12.5%. He used information from a survey by the World Bank and PwC to support his point. In a radio interview in February 2014, O'Rourke said there was a "hole the size of the Grand Canyon" in the US analysis of Ireland's tax rates.
The difference comes from how Ireland's overall tax "system" works compared to its official tax "rate." The EU Commission's findings against Apple in 2016 highlighted this. The Irish tax office believed Apple was paying the full 12.5% tax on its profits in Ireland. However, the EU Commission found something different. They stated that Apple's special tax treatment allowed it to pay a very low effective tax rate. This rate went from 1% in 2003 down to just 0.005% in 2014 on its European profits.
Experts point out that Ireland's tax system, and the plans O'Rourke helped create, are very powerful. This is more important than just the official 12.5% tax rate. One expert, Jonathan Weil, said that if a tax system hides most profits from being taxed, then applying a 12.5% rate is almost the same as applying a 0% rate.
Feargal O'Rourke's Impact
The very low effective tax rates (0-2.5%) that came from O'Rourke's tax plans have received criticism from around the world. Studies by academics have shown that Ireland acts as a major tax haven. In June 2018, tax experts even said that Ireland was the biggest global tax haven. They found it helped US companies hide over $100 billion in profits each year from both Irish and US taxes.
O'Rourke's defense of Ireland's low tax rates for US companies is part of Ireland's "green jersey agenda." This is a strategy to promote "Ireland Inc." and its economy. It means putting Ireland's economic interests first, even if it means facing criticism or financial risks. This is a common approach in Irish politics.
Despite the tax money lost by other countries, O'Rourke's tax plans have brought a lot of wealth to Ireland. Many of Ireland's top companies are US-controlled. These companies employ a quarter of Ireland's private sector workers. They also pay 80% of Ireland's business taxes. They create a large part of Ireland's economic value. However, O'Rourke's tax plans have been less successful at attracting companies from outside the US to Ireland.
In October 2013, Bloomberg News reported that O'Rourke is seen as a "hero" in Ireland. He is often asked to share his thoughts on the Irish economy and its tax policies. O'Rourke has been part of several important Irish government groups that review tax rules. He was also named as one of five "Independent Persons of Standing" in Ireland for international tax agreements.
In February 2014, The Irish Times newspaper included him in their list of the 50 most influential people in Ireland. O'Rourke is also on the board of the American Chamber of Commerce Ireland. This group represents US companies in Ireland. In March 2018, he mentioned that new US tax laws would be a challenge for Ireland's economy. However, he believed Ireland could handle it. In April 2018, he suggested that the Irish government should create a "rainy day fund" to save money for difficult times. O'Rourke also uses Twitter to share his views.
See also
- EU illegal state aid case against Apple in Ireland
