Apple's $42 billion tax loophole closed in Ireland


Recommended Posts

But an even bigger loophole remains open

 

http://www.crn.com.au/News/360701,apples-42-billion-tax-loophole-closed-in-ireland.aspx

 

Ireland said on Tuesday it planned to shut down a much-criticised tax arrangement used by Apple to shelter over $40 billion from taxation - but will leave open an even bigger loophole that means the computer giant is unlikely to pay any more tax.

 

A US Senate committee investigation revealed in May that Apple had cut billions from its tax bill by declaring companies registered in the Irish city of Cork as not tax resident in any country. Senator Carl Levin said the company had achieved the "holy grail of tax avoidance" with the structures.

 

Irish leaders protested angrily against the committee's characterisation of Ireland as a facilitator of tax avoidance.

Parliamentary hearings were subsequently held to review Ireland's tax rules amid concerns that damage to its reputation could jeopardise the foreign investment on which its economy relies heavily.

 

Irish Finance Minister Michael Noonan said on Tuesday that he planned to make it illegal for a company registered in Ireland to have no tax domicile anywhere.

 

A spokesman for the Department of Finance declined to explain the change but denied it was due to US pressure.

He added that companies could still nominate any country they liked as their tax residence, including zero tax jurisdictions such as Bermuda - a provision that tax advisers said was unusual internationally.

 

Chas Roy-Chowdhury, head of taxation at the London-based global accountancy body ACCA, said this meant the changes were unlikely to mean higher tax bills for companies that use Irish subsidiaries to minimise taxes.

Link to comment
Share on other sites

Why the focus on Apple....? Headline bait? Every major international corporation is doing it.

 

Good thing Ireland will close this loophole. Now if only the Netherlands would do the same...

Link to comment
Share on other sites

Why don't they just change it so that any company registered to do business in Ireland, has to pay corporation tax?  Same for any country. Don't even let them do business in your country without them being registered to pay tax in your country.

Link to comment
Share on other sites

No need to stir up trolls with only Apple in the title.

Apple is mentioned in the source article and is one of the largest companies exploiting it, so it's not exactly unfair. If Apple doesn't want to be associated with tax avoidance then it shouldn't be using such sleazy accounting practices.

Link to comment
Share on other sites

Apple is mentioned in the source article and is one of the largest companies exploiting it, so it's not exactly unfair. If Apple doesn't want to be associated with tax avoidance then it shouldn't be using such sleazy accounting practices.

 

That's an opinion. :)  Neowin is hostile enough as it is so in the interest of reporting news here it's good to keep it an unbiased as possible, irrespective of the focus of the original article.

 

My 2c. 

Link to comment
Share on other sites

This topic is now closed to further replies.
  • Recently Browsing   0 members

    • No registered users viewing this page.