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"Double Irish" Tax Loophole Used By US Companies To Be Closed
An anonymous reader writes: The Irish Finance Minister announced on Tuesday that Ireland will no longer allow companies to register in Ireland unless the companies are also tax resident. This will effectively close off the corporate tax avoidance scheme known as the "Double Irish" used by the likes of Google, Apple, and Facebook to route their earnings through their Irish holdings in order to garner an effective tax rate of, as in Google FY2013, 0.16%. Ireland's new policy will take effect in 2015 for new companies. "For existing companies, there will be provision for a transition period until the end of 2020."
To a new tax haven we go!
*whistles*
Why wouldn't people just use the system of "where your customers pay you" for any multinational company to determine "where to tax is owed"? Much simpler and fairer between different nations.
Because they are not trying to be fair.
Because taxes are used for paying for municipal/government protections, services, etc. If they have no physical entity then why should they pay for these things? It's not that simple, is all.
-SaNo
"Tax evasion" is a crime. "Tax avoidance" is what is being done here.
"Tax evasion" has one legal meaning and another colloquial one. Colloquially speaking, "tax evasion" includes tax avoidance of this character.
Source: talking to people who aren't tax lawyers.
"Tax evasion" has one legal meaning and another colloquial one. Colloquially speaking, "tax evasion" includes tax avoidance of this character.
In other words, tax evasion is what other people do when I don't like it.
Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
As far as Ireland is concerned, that is exactly it.
Google, Facebook and Microsoft (to name three, I'm fairly sure there are more) hold huge development and support centers in Ireland. While corporate tax in Ireland is low, income tax is fairly high. The Ireland government isn't losing from this deal.
Shachar
No. They're not lying. They are telling the truth. They structure their business models to make sure that the money is earned in the least taxable manner.
It's common sense. A for-profit corporation exists to maximize shareholder value within the confines of the law. To do anything less is a breach of fiduciary responsibilities.
LK
"Hi. This is my friend, Jack Shit, and you don't know him." - Lord Kano
Either you haven't understood how society works, or how the Double Irish scheme works... or maybe even both.
I don't think he's listening. His eyes and ears are covered by the American mythology of the invisible hand.
You again? I suggest you look up the topic in question and you'll find out that Ireland gets little or no benefit from that specific tax loophole.
I really don't understand what you are trying to do with your "all doomed if anything changes" attitude on a variety of topics especially when it defies what everyone can observe within a minute of background reading.