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Irish Government May Close Apple's Biggest Tax Loophole

Posted by Soulskill on from the all-about-the-benjamins dept.

DavidGilbert99 writes "Ireland and its tax system came under some extreme scrutiny earlier this year when it was revealed that Apple funneled billions of dollars of revenue though three subsidiaries based in the country. Thanks to a loophole, none of these subsidiaries were tax-resident in Ireland, meaning they didn't even have to pay Ireland's relatively low 12.5% corporation tax rate. Worryingly for Apple, Ireland's finance minister may now shut this loophole. A measure within a new budget bill (PDF) would disallow Apple's status as a 'stateless' corporate entity for tax purposes. Apple will still be able to select a country like Bermuda as its tax residence, but it's a step in the right direction."

6 of 292 comments (clear)

  1. Because Apple by kommakazi · · Score: 5, Funny

    I'm sure no other companies use this.

    1. Re:Because Apple by Anonymous Coward · · Score: 5, Funny

      Well, currently, no other "most valuable company in the world" does. You know, because like Highlander, there can be only one.

    2. Re:Because Apple by Anonymous Coward · · Score: 5, Informative

      Saudi Aramco, the actual current most valuable company, doesn't pay shit because they basically own the Saudi government, which is a pretty sweet gig if you can get it.

      (But no, let's keep pretending that a cellphone manufacturer is the most valuable company in the world because they have the highest market capitalization when you sort everybody on Google Finance.)

    3. Re:Because Apple by djnanite · · Score: 5, Informative

      Actually, it's the awful commenters that are turning people away. For example, you only had to do a search in the Slashdot Search bar for 'Google Tax' to see half a dozen published stories about Google's tax exploits.

  2. Tax Avoidance by Anonymous Coward · · Score: 5, Insightful

    I will not speak out about this practice that hurts me indirectly because I am deluded into thinking that any day now I'll be rich enough to make use of it myself.

      - Joe Sixpack Americano

  3. Not a US company - Can't lobby by Leuf · · Score: 5, Insightful

    I have no problem with corporations taking advantage of whatever the law allows them to do but there should be consequences. If the government is going to consider a corporation to be like a person with 1st amendment rights and money to be speech, well they are declaring their corporate personhood to not be a citizen, only a resident. Residents don't get to vote, only citizens. If you don't have a vote then you shouldn't have any right to contribute anything to the election process. If you want a voice in the government then pay taxes.