Friendly tax environment sees Irish economy surge 26%

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Ireland’s GDP grew by more than a quarter last year, according to the data released by the Central Statistics Office on Tuesday. The sharp rise is explained by multinational companies relocating corporate assets to the country.

Analysts had previously predicted the economy would expand by just 7.3 percent.

Tax inversions, switching of tax domicile after a merger or acquisition has risen significantly in recent years with Ireland gaining in popularity as a destination due to its low corporate tax regime.

“We are a very small economy, and if we get a big increase in assets, this is what happens,” said Michael Connolly, an official at the CSO, explaining the shift.

US corporate giants like security systems provider Tyco, drug company Allergan, medical device producer Medtronic are domiciled in Ireland after acquiring smaller rivals located in the country and transforming into an Irish corporation.

Last year, Ireland’s Finance Minister Michael…

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