Modified gross national income

GNI*modified GNIIrish modified GNI (or GNI star)Modified GNI*162%modified Gross National Income (GNI)
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc.wikipedia
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Corporation tax in the Republic of Ireland

corporate tax inversiontax inversioneffective tax rate
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc.
It forced the Central Bank of Ireland to abandon GDP in 2017, and replace with modified gross national income (GNI*), which removes part, but not all, of the distortions by BEPS tools.

Central Bank of Ireland

Central BankGovernor of the Central Bank of IrelandCentral Bank and Financial Services Authority of Ireland
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc. CBI, IFAC, ESRI, NTMA, leading academics and the Department of Finance), to recommend new economic statistics that would better represent the true position of the Irish economy. In September 2016, as a direct result of the "leprechaun economics" affair, the Governor of the Central Bank of Ireland ("CBI"), Philip R. Lane, chaired a special cross-economic steering group, the Economic Statistics Review Group ("ESRG"), of stakeholders (incl.
While the Bank has taken actions to address some of the main criticisms (e.g. break from "green jersey agenda", explicit mortgage controls, and the new modified gross national income metric), there is evidence other issues remain (e.g. commercial property bubbles, and light-touch regulation), and that new controls, such as mortgage limits, are being circumvented by Irish banks and the Irish State.

Leprechaun economics

Q1 2015 restructuring
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc. The announcement led to ridicule, and was labelled by Noble Prize economist Paul Krugman as "leprechaun economics".
Irish 2017 GDP was 162% of 2017 Irish GNI* (EU–28 2017 GDP was 100% of GNI).

Tax haven

tax havenstax haven listscountry
While "distortion of GDP-per-capita" due to BEPS tools is a feature of tax havens, Ireland was the first to adjust its GDP metrics. An elevated GDP-per-capita became a "proxy indicator" of a tax haven.
Apple's Q1 2015 "leprechaun economics" BEPS transaction in Ireland was a dramatic example, which caused Ireland to abandon its GDP and GNP metrics in February 2017, in favour of a new metric, modified gross national income, or GNI*.

Gross national income

GNPgross national productGNI
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc.
In February 2017, Ireland's GDP became so distorted from the base erosion and profit shifting ("BEPS") tax planning tools of U.S. multinationals, that the Central Bank of Ireland replaced Irish GDP with a new metric, Irish Modified GNI*.

Corporate haven

IP–based BEPS tooltransformed their tax code in 2009–12Corporate tax haven lists
An elevated GDP-per-capita became a "proxy indicator" of a tax haven.
Ireland's distorted economic statistics, post leprechaun economics and the introduction of modified GNI, is captured on page 34 of the OECD 2018 Ireland survey:

Apple Inc.

AppleApple ComputerApple Inc
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc.
The affair required the Central Bank of Ireland to create a new measure of Irish economic growth, Modified GNI* to replace Irish GDP, given the distortion of Apple's tax schemes.

Ireland as a tax haven

Green Jerseycaptured statecomplex agendas
From July 2016 to July 2018, the Central Statistics Office refused to identify the source of leprechaun economics, and suppressed the release of other economic data to protect Apple's identity under the 1993 Central Statistics Act, in the manner of a "captured state", further damaging confidence in Ireland.
The level of base erosion and profit shifting (BEPS) by U.S. multinationals in Ireland is so large, that in 2017 the Central Bank of Ireland abandoned GDP/GNP as a statistic to replace it with Modified gross national income (GNI*).

Double Irish arrangement

Double IrishSingle MaltCAIA arrangement
In November 2005, the Wall Street Journal reported that U.S. technology and life sciences multinationals (e.g. Microsoft), were using an Irish base erosion and profit shifting ("BEPS") tool called the double Irish, to minimise their corporate taxes. In late 2014, to limit further exposure to fines from the EU Commission's investigation into Apple's Irish tax schemes, Apple closed its hybrid–double Irish BEPS tool, and decided to swap into the "Green Jersey" BEPS tool. Designed by PwC (Ireland) tax partner, Feargal O'Rourke, the double Irish would become the largest BEPS tool in history, and would enable U.S. multinationals to accumulate over USD 1 trillion in untaxed offshore profits.
In February 2017, Ireland's national accounts became so distorted by BEPS flows that the Central Bank of Ireland replaced Irish GDP and Irish GNP with a new economic measure, Irish Modified GNI*.

Central Statistics Office (Ireland)

Central Statistics OfficeCSOCentral Statistics Office of Ireland
In August 2018, the Central Statistics Office (Ireland) (CSO) restated table of showed GDP was 162% of GNI* (EU–28 2017 GDP was 100% of GNI).

Economy of the Republic of Ireland

IrelandIrish economyeconomy
The distortion of Ireland's economic statistics (including GNI, GNP and GDP) by the tax practices of some multinationals, led the Central Bank of Ireland to propose an alternative measure (modified GNI or GNI*) to more accurately reflect the true state of the economy from that year onwards.

Paul Krugman

Paul R. KrugmanKrugmanKrugman, P.
The announcement led to ridicule, and was labelled by Noble Prize economist Paul Krugman as "leprechaun economics".
The leprechaun economics affair (proved in 2018 to be Apple restructuring its double Irish subsidiaries), led to the Central Bank of Ireland introducing a new economic statistic, Modified gross national income (or GNI*) to better measure the Irish economy (2016 Irish GDP is 143% of 2016 Irish GNI*).

Irish Fiscal Advisory Council

IFAC
CBI, IFAC, ESRI, NTMA, leading academics and the Department of Finance), to recommend new economic statistics that would better represent the true position of the Irish economy.
The problem of assessing Ireland's public indebtedness post "leprechaun economics" and "modified GNI", is captured on page 34 of the OECD 2018 Ireland Survey:

Gross domestic product

GDPnominal GDPGDP (nominal)
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc.

EU illegal State aid case against Apple in Ireland

2014–2016 EU Commission inquirya fine of €13 billion, plus interest, in unpaid Irish taxes for 2004–2014a two-year investigation
In late 2014, to limit further exposure to fines from the EU Commission's investigation into Apple's Irish tax schemes, Apple closed its hybrid–double Irish BEPS tool, and decided to swap into the "Green Jersey" BEPS tool.

Philip R. Lane

Philip LanePhilip Richard Lane
In September 2016, as a direct result of the "leprechaun economics" affair, the Governor of the Central Bank of Ireland ("CBI"), Philip R. Lane, chaired a special cross-economic steering group, the Economic Statistics Review Group ("ESRG"), of stakeholders (incl.
Lane has taken actions to address some of the main criticisms (e.g. break from "green jersey agenda", explicit mortgage controls, and the new modified gross national income metric), there is evidence other issues remain (e.g. commercial property bubbles, and light-touch regulation), and that new controls, such as mortgage limits, are being circumvented by Irish banks, and the Irish State itself.

National Treasury Management Agency

NTMA
CBI, IFAC, ESRI, NTMA, leading academics and the Department of Finance), to recommend new economic statistics that would better represent the true position of the Irish economy.

Eurostat

statisticalEuropean Statistical SystemStatistical Office
Economists, including Eurostat, noted Irish Modified GNI (GNI*) is still distorted by Irish BEPS tools and U.S. multinational tax planning activities in Ireland (e.g. contract manufacturing); and that Irish BEPS tools distort aggregate EU–28 data, and the EU–U.S. trade deficit.

Base erosion and profit shifting

BEPSprofit shiftingcorporate tax planning tools
Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the increasing distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes were having on Irish GNP and Irish GDP; the climax being the July 2016 leprechaun economics affair with Apple Inc. In November 2005, the Wall Street Journal reported that U.S. technology and life sciences multinationals (e.g. Microsoft), were using an Irish base erosion and profit shifting ("BEPS") tool called the double Irish, to minimise their corporate taxes. Economists, including Eurostat, noted Irish Modified GNI (GNI*) is still distorted by Irish BEPS tools and U.S. multinational tax planning activities in Ireland (e.g. contract manufacturing); and that Irish BEPS tools distort aggregate EU–28 data, and the EU–U.S. trade deficit. Designed by PwC (Ireland) tax partner, Feargal O'Rourke, the double Irish would become the largest BEPS tool in history, and would enable U.S. multinationals to accumulate over USD 1 trillion in untaxed offshore profits. From 2003–2007, artificially inflated Irish GDP from U.S. multinational BEPS tools, exaggerated the Irish Celtic Tiger period by stimulating Irish consumer optimism, who increased borrowing to OCED record levels; and global capital markets optimism about Ireland, who enabled Irish banks to borrow 180% of Irish deposits.

Contract manufacturer

contract manufacturingon contractcontract
Economists, including Eurostat, noted Irish Modified GNI (GNI*) is still distorted by Irish BEPS tools and U.S. multinational tax planning activities in Ireland (e.g. contract manufacturing); and that Irish BEPS tools distort aggregate EU–28 data, and the EU–U.S. trade deficit.

James R. Hines Jr.

HinesHines 2010 tax haven listHines–Rice paper
In February 1994, tax academic James R. Hines Jr., identified Ireland as one of seven major tax havens in his 1994 Hines–Rice paper, still the most cited paper in research on tax havens.

PricewaterhouseCoopers

PwCPrice WaterhouseCoopers & Lybrand
Designed by PwC (Ireland) tax partner, Feargal O'Rourke, the double Irish would become the largest BEPS tool in history, and would enable U.S. multinationals to accumulate over USD 1 trillion in untaxed offshore profits.

Feargal O'Rourke

Designed by PwC (Ireland) tax partner, Feargal O'Rourke, the double Irish would become the largest BEPS tool in history, and would enable U.S. multinationals to accumulate over USD 1 trillion in untaxed offshore profits.

Celtic Tiger

Irish economyeconomic boomeconomic boom of the late 1990s
From 2003–2007, artificially inflated Irish GDP from U.S. multinational BEPS tools, exaggerated the Irish Celtic Tiger period by stimulating Irish consumer optimism, who increased borrowing to OCED record levels; and global capital markets optimism about Ireland, who enabled Irish banks to borrow 180% of Irish deposits.

Post-2008 Irish economic downturn

Irish financial crisisfinancial crisisIreland
Their withdrawal, from an over-borrowed Irish credit system, precipitated a deep Irish property and banking collapse in 2009–2012.