World leaders frustrated as Trump throws toys from pram

It was a photograph that could well go down as one of the most defining of Donald Trump’s US presidency.

No, not the image of Trump and North Korean dictator Kim Jong-un, side by side at their summit in Singapore, but the photograph days earlier from Québec in Canada, where the leaders of the G7 group of nations held a summit of their own.

German chancellor Angela Merkel, surrounded by other world leaders, is leaning over the table towards a seated Trump, seemingly trying to find compromise, while the US president looks as though he might as well have his fingers in his ears and his eyes tightly shut.

The summit had by all accounts gone well by that stage. Trump left the meeting claiming it had been “tremendously, tremendously successful”, rating his relationship with the leaders of Canada, France and Germany as a “10”.

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They say a week is a long time in politics, but they obviously never met Trump. Just hours later, he embarked on a blistering attack on Canadian prime minister Justin Trudeau for having the temerity to suggest Canada would fight fire with fire on tariffs.

Trudeau had said he “made it very clear” to Trump that while imposing tariffs on US imports was “not something we relish doing”, Canada could “not be pushed around”. A furious Trump, tweeting from Air Force One, called Trudeau “dishonest and weak”.

Peter Navarro, one of Trump’s top trade advisers, said there was “a special place in hell” for any leader who “stabbed” Trump in the back as he made his way out the door. The hard-fought joint communiqué from the G7 was then scuttled as Trump ordered his aides not to sign it.

Merkel called the move “depressing” but said Europe could not be “had” on trade, while French president Emmanuel Macron said international co-operation could not be dictated by “fits of anger”.

There are just two weeks to go to the long talked about European Union summit where stock will be taken on the Brexit talks.

Despite all the bluster of the June “deadline”, the Government this week conceded that any deal on a “backstop” for the Irish Border would not be completed until Britain’s EU withdrawal agreement is finalised in October.

Taoiseach Leo Varadkar said that while there had not been “sufficient progress” – which was the key stipulation – on Border issues, the talks should continue. He later claimed that this did not represent a softening of Dublin’s position.

Varadkar's predecessor, Enda Kenny, emerged from the political wilderness this week to accept the European of the Year award from European Movement Ireland.

Accepting the gong, Kenny delivered a stinging rebuke to London that would have been unheard of during his days on Merrion Street. He said he was “appalled” that the British government was “riven by internal dissent” and lacks credibility.

One of Kenny’s key allies while in government was EU commissioner Phil Hogan who also spoke out this week. He said the “tide is going out on the high priests of Brexit” and raised the prospect of a second referendum.

Hogan said British public opinion was turning against Brexit and the British public was starting to see through the “deception and lies” of pro-Brexit politicians.

Meanwhile, IDA Ireland chief executive Martin Shanahan said that "in excess of 40" companies have chosen to invest in the Republic as a direct result of Britain's impending exit from the EU.

However, Shanahan also warned of "a slowdown of decision making" from potential US investors, due to attempts by Donald Trump to discourage US companies from investing abroad.

Nothing to see here – move along now.

That was the reaction from Government Buildings this week as the Republic scooped first place in a study of the world’s biggest tax havens.

The research from academics at the University of California, Berkeley, and the University of Copenhagen estimated that foreign multinationals shifted $106 billion (€90 billion) of corporate profits here in 2015.

This was more than all of the islands of the Caribbean combined ($97 billion/€83 billion), and well ahead of Singapore ($70 billion/€60 billion), and Switzerland ($58 billion/€49 billion).

“By our estimates, Ireland is the number one shifting destination,” the paper stated.

The Department of Finance rejected the report as “overly simplistic”, while Minister for Finance Paschal Donohoe later said that multinationals shifted more profits through the Republic because it attracted more jobs.

There was no support to be had from former Greek finance minister Yanis Varoufakis who said during a speech in Germany that the Republic was “free-riding” on the rest of Europe.

"Of course Ireland is a tax haven," he said. "They are piggybacking, free-riding on you, on us by allowing Apple and Facebook to pay 2 per cent tax". Ouch.

All that might well be coming to a head at some stage, as the European Commission proposed to fund a significant part of its next budget through the proposed Consolidated Common Corporate Tax Base (CCCTB).

The move to harmonise corporation tax rules across the bloc has yet to be agreed by member states and is opposed by the Irish Government, which views it as a threat to the State’s €8 billion corporation tax base.

Of course it’s a different story when it comes to tax loopholes at home. Revenue has recently begun cracking down on homeowners who let rooms through accommodation website Airbnb.

An estimated 23,000 people earned €115 million last year from letting all or part of their homes through Airbnb. Revenue has written to homeowners who have let rooms telling them that their tax affairs are under investigation.