Another Blow to Irish Pride
The Celtic Tiger’s roar is sadly muted these days, what with Dell’s decision to close its Limerick factory and head for lower-cost pastures in Poland, and dark murmurs in the press about the possibility of a new Irish exodus. And now, as if the economic news isn’t bad enough, the country has to endure a bout of whining from rock icon Bono, who says he feels “stung” and “hurt” by criticisms leveled at his band for moving its music publishing operation to the Netherlands to reduce its tax burden.
In an interview in the Irish Times today, the global antipoverty campaigner and front man of the band U2 lashed out at accusations of tax avoidance: “We pay millions and millions of dollars in tax. The thing that stung me [about the criticism] was the accusation of hypocrisy for my work as an activist.” The tax-induced change of domicile in 2006 didn’t sit well with critics, who pointed out that just a few months earlier Bono had been calling on the Irish government to increase its funding for overseas aid programs.
The hypocrisy is all on the critics’ side, says Bono. Ireland’s pre-recession prosperity was built on low-tax policies that attracted corporations from around the world, he argues. So you can hardly complain when an Irish concern relocates to a European neighbor that offers even better tax breaks.
“People who don’t know our music — it’s very easy for them to take a position on us — they run with the stereotypes and caricature of us,” Bono adds.
Well, I can’t claim to be a connoisseur of the music, but I think I can say that the only “stereotype” of the band in my mind is that of a globally treasured, uniquely Irish cultural asset led by a man who, perhaps more than anyone in the past quarter-century, symbolizes that nation’s vigorous arts and legendary generosity.
Was it worth jeopardizing that image for the sake of some tax savings? Let me point out that Ireland’s corporate tax regime is mild enough that the country made the U.S. Government Accounting Office’s recent list of tax havens. And, for many years, Bono and U2 enjoyed a special tax exemption for artists that, as far as I know, was unique to Ireland.
I’m certainly not denying that Bono has every right to redeploy his assets wherever he wants faster than a speeding Dell factory, and to explain his decisions in terms you might expect to hear from any CEO looking for the best deal on a new call center.
Still, I can’t help feeling it’s another sad day for Ireland. ###
March 2nd, 2009 at 1:05 pm
What a disappointment to find out that Bono, rock ‘n’ roll’s humanitarian hero, is a tax avoider. He’s not willing to pay taxes in his own country, which has one of the worst economies in the Eurozone, yet he expects people to raise millions of dollars for his causes.
I think Irish-born British TV star Graham Norton summed up the situation nicely: “People like Bono really annoy me. He goes to hell and back to avoid paying tax. He has a special accountant. He works out Irish tax loopholes. And then he’s asking me to buy a well for an African village. Tarmac a road or pay for a school, you tightwad!”
March 2nd, 2009 at 1:59 pm
Well, “to hell and back” seems a bit over the top - it’s only as far as Amsterdam!! And let’s not forget that Bono and U2 do have other concerns in Ireland that they’re taxed on, and they also pay taxes in other countries around the world. But I think what upsets Norton and many of his compatriots is the thought that it’s not as if Bono is short of a few euros to send to the Revenue. He’s got to be one of the wealthiest men in the country.
March 3rd, 2009 at 5:07 pm
Quick to judge, we are. But along with Bono’s very public work for good, have you any idea what his private charity might be? I don’t know either, but it would not surprise me to find him personally generous. Perhaps lessening his tax burden may facilitate his philanthropy.
March 3rd, 2009 at 6:03 pm
I hope you’re right. Their new album was finally released today (bad timing for Bono) and, while I’ll probably buy it anyway, I prefer to think I’m supporting Bono the Philanthropist rather than Bono the Tax Avoider.
March 5th, 2009 at 5:09 pm
What ever his tax status, no one will need to hold a benefit concert FOR Bono. The average Irish citizen however may well need one. My dear Irish Mother recently came back from a trip “home” to report the row upon row of half finished homes and For Sale signs in her small village. But reported, “Tough times now Jackie. But you know, we were always a poor people and sure it never bothered us.” I didn’t bother to point out that it’s different being poor when you’ve had a taste of what rich is like…
March 5th, 2009 at 5:51 pm
Some day the Tiger will roar again. And then there will be those of us who’ll be kicking ourselves that we didn’t snap up one of those village homes when we had the chance …
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