Feargal O'Rourke
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Feargal O'Rourke (born 3 August 1964) is an Irish accountant and corporate tax expert, who was the
managing partner A partner in a law firm, accounting firm, consulting firm, or financial firm is a highly ranked position, traditionally indicating co-ownership of a partnership in which the partners were entitled to a share of the profits as " equity partners" ...
of
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in Ireland. He is considered the architect of the ''
Double Irish The Double Irish arrangement was a base erosion and profit shifting (BEPS) corporate tax avoidance tool used mainly by United States multinationals since the late 1980s to avoid corporate taxation on non-U.S. profits. (The US was one of a sma ...
'' tax scheme used by U.S. firms such as Apple, Google and Facebook in Ireland, and a leader in the development of corporate tax planning tools, and tax legislation, for U.S. multinationals in Ireland.


Personal

O'Rourke comes from an established
Fianna Fáil Fianna Fáil ( ; ; meaning "Soldiers of Destiny" or "Warriors of Fál"), officially Fianna Fáil – The Republican Party (), is a centre to centre-right political party in Ireland. Founded as a republican party in 1926 by Éamon de ...
political family. He is the son of former Irish minister Mary O'Rourke, nephew of former Irish
Tánaiste The Tánaiste ( , ) is the second-ranking member of the government of Ireland and the holder of its second-most senior office. It is the equivalent of the deputy prime minister in other parliamentary systems. The Tánaiste is appointed by the P ...
Brian Lenihan Snr Brian Patrick Lenihan (17 November 1930 – 1 November 1995) was an Irish Fianna Fáil politician who served as Tánaiste from 1987 to 1990, Minister for Defence from 1989 to 1990, Minister for Agriculture from March 1982 to December 1982, ...
, and cousin of former Irish Finance Minister Brian Lenihan Jnr, and former Irish Minister of State Conor Lenihan. He chaired the college branch of
Fianna Fáil Fianna Fáil ( ; ; meaning "Soldiers of Destiny" or "Warriors of Fál"), officially Fianna Fáil – The Republican Party (), is a centre to centre-right political party in Ireland. Founded as a republican party in 1926 by Éamon de ...
at UCD and joined the national executive on graduation.


Double Irish

O'Rourke was once labeled the "great architect" of the ''Double Irish'' base erosion and profit shifting ("BEPS") tool, as used by U.S. multinationals in Ireland such as Google, a known client of O'Rourke's, Facebook, and Apple. O'Rourke's work on Google's BEPS tools featured in a 2018 book by
Richard Brooks Richard Brooks (born Reuben Sax; May 18, 1912 – March 11, 1992) was an American screenwriter, film director, novelist and film producer. Nominated for eight Academy Awards in his career, he was best known for ''Blackboard Jungle'' (1955), '' ...
: The €13 billion fine levied by the EU Commission on Apple's ''Double Irish'' BEPS tool, for Irish taxes avoided from 2004 to 2014, is the largest corporate tax fine in history. O'Rourke's PwC (Ireland) tax practice represented the Irish State in its tax defence, during the commission's Apple investigation. O'Rourke rejects the labels, but also rejects the notion that the Irish tax code shouldn't legally, and transparently, exploit loopholes in the US tax code: Other Irish financial commentators have taken a different view on this strategy: In October 2013, O'Rourke predicted the end of the ''Double Irish'', which was closed to new entrants in January 2015. New Irish BEPS tools replaced it: the '' Single Malt'' scheme (used by Microsoft and Allergan), and the '' Capital Allowances for Intangible Assets'' ("CAIA") scheme, (used by Apple in its Q1 2015 restructuring). It was O'Rourke's 2009 ''Commission on Taxation'', that recommended expanding Irish capital allowances tax scheme to
intangible assets An intangible asset is an asset that lacks physical substance. Examples are patents, copyright, franchises, goodwill, trademarks, and trade names, reputation, R&D, know-how, organizational capital as well as any form of digital asset such ...
creating the ''CAIA'' BEPS tool in the 2009 ''Finance Act''. Accenture was an early user of the ''CAIA'' BEPS tool, when it executed the first corporate tax inversion to Ireland in 2009.


Effective tax rates

In January 2014, O'Rourke publicly defended Ireland's BEPS tools, when the U.S.
Bureau of Economic Analysis The Bureau of Economic Analysis (BEA) of the United States Department of Commerce is a U.S. government agency that provides official macroeconomic and industry statistics, most notably reports about the gross domestic product (GDP) of the United ...
(BEA) method of calculating ''effective tax rates'' (ETRs), showed Ireland's corporate ETR was between 2.2% to 3.8%. It renewed international controversy on Ireland as a corporate tax haven. O'Rourke defended Ireland's ETR as being close to the headline Irish corporate tax rate of 12.5%, and quoted the World Bank/PwC survey. In one February 2014 radio interview, O'Rourke asserted that "there was a hole the size of the Grand Canyon", in the BEA analysis of Ireland's ETR. The disconnect lies in the distinction between Ireland's corporation tax "regime" versus Ireland's corporation tax "rate", which was highlighted by the EU Commission's 2016 findings against Apple's double Irish tax system in Ireland. According to the Irish Revenue, Apple had been paying the full Irish 12.5% tax rate on what Revenue considered to be "taxable profits" in Ireland The EU Commission found a very different situation: Experts note the potency of Ireland's '' corporation tax regime'', and O'Rourke's BEPS tools, as opposed to the ''headline'' 12.5% corporate tax rate.Misleadingly, studies cited by ''The Irish Times'' and other outlets suggest that the effective tax rate is close to the headline 12.5 percent rate – but this is a fictional result based on a theoretical 'standard firm with 60 employees' and no exports: it is entirely inapplicable to transnationals. Though there are various ways to calculate effective tax rates, other studies find rates of just 2.5–4.5 percent.


Legacy

The ETRs of 0–2.5% from O'Rourke's BEPS tools have drawn international criticism. Academic research has shown Ireland as a major
tax haven A tax haven is a term, often used pejoratively, to describe a place with very low tax rates for Domicile (law), non-domiciled investors, even if the official rates may be higher. In some older definitions, a tax haven also offers Bank secrecy, ...
, and in June 2018 tax academics showed Ireland to be the largest global
tax haven A tax haven is a term, often used pejoratively, to describe a place with very low tax rates for Domicile (law), non-domiciled investors, even if the official rates may be higher. In some older definitions, a tax haven also offers Bank secrecy, ...
, helping U.S. multinationals to shield over $100 billion in annual profits from Irish and U.S. taxation. O'Rourke's defense of Ireland's low corporate ETRs for U.S.–controlled multinationals is part of Ireland's " green jersey agenda" to advance " Ireland Inc." over other potential consequences, such as reputation or
financial risk Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financi ...
, which is not an uncommon political strategy in Ireland. Regardless of the tax losses to other nations, O'Rourke's BEPS tools have brought prosperity to Ireland. 25 of Ireland's top 50 firms (by turnover) are U.S.–controlled multinationals, employing one quarter of Ireland's private sector workforce, paying 80% of Irish business taxes, and creating 57% of Irish private sector non-farm value-add in Ireland. (see low tax economy). O'Rourke's BEPS tools however have been less effective in attracting non–U.S. multinationals to Ireland, or more accurately, multinationals from "territorial" tax systems (e.g. the U.K post their 2009 transformation to a "territorial" tax system). Bloomberg noted in October 2013 that O'Rourke is regarded a "hero" in Ireland. He is a sought after commentator on the Irish economy, and on Irish corporate taxation policy. O'Rourke has sat on several major Irish State taxation review groups, including the major 2009 ''Commission on Taxation'', and is one of the 5 people named in Ireland's ''"Independent Persons of Standing"'' list under the Double Taxation Arbitration Convention. In February 2014, he was named in ''
The Irish Times ''The Irish Times'' is an Irish daily broadsheet newspaper and online digital publication. It was launched on 29 March 1859. The editor is Ruadhán Mac Cormaic. It is published every day except Sundays. ''The Irish Times'' is Ireland's leading n ...
'' 50 people who run Ireland list. O'Rourke sits on the Board of the American Chamber of Commerce Ireland, the lobby group for U.S. multinationals in Ireland. In March 2018, he noted the U.S.
Tax Cuts and Jobs Act of 2017 The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, , is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs ...
will be a challenge to Ireland's U.S. economic model but that Ireland should be able to withstand it. In April 2018, he advised that the Irish State should build a rainy day fund. O'Rourke maintains an active Twitter account.


See also

*
EU illegal state aid case against Apple in Ireland Apple's EU tax dispute refers to an investigation by the European Commission into tax arrangements between Apple Inc., Apple and Ireland, which allowed the company to pay close to zero corporate tax over 10 years. On 29 August 2016, aft ...


Notes


References

{{DEFAULTSORT:ORourke, Feargal 1965 births Living people Alumni of University College Dublin Corporate tax avoidance International taxation Irish chief executives People educated at Marist College, Athlone People from Athlone Taxation in the Republic of Ireland Tax avoidance 21st-century Irish people