Accenture the Irish firm

(By Richard Holway 1.00pm 28th May 09) Accenture is to move its ‘place of incorporation’ from Bermuda to Ireland. It seems to be as a direct consequence of the US Government’s new tightened tax rules. Countries in Europe – like Ireland and Switzerland – are seen to benefit from Obama’s moves to stop companies deferring tax payments on overseas profits if earnings are reinvested in overseas subsidiaries.

Although Accenture claimed a long, 40-year history in Ireland including counting the Irish Govt as a customer, this is a decision being taken for the benefit of the bank balances of Accenture’s many partners.

I must admit to a distaste to these things – be it Bermuda or Ireland, companies or individuals. Let’s fight for fair taxes not move allegiances to the cheapest location. In my case, Britain educated me and my kids and I feel it only right to repay that. I'll still fight against a 50% tax rate though!

Ireland should beware. Companies can move away just as quickly and easily as they move in. I remember a few years ago when Ireland was crowing about having the biggest software industry, as measured by exports, in Europe! This was purely because big companies like Microsoft used it as a distribution base for tax reasons. The Irish tiger does not roar so loudly today. Goodness knows how Accenture’s change of base will affect some less knowledgeable researchers ranking tables for SITS in Europe!