Items tagged with double irish

Apple’s longstanding beef in the European Union over allegations of tax dodging has finally come to a dramatic end (pending an appeal, of course). In essence, Apple simply delayed the inevitable, as the European Commission is ordering that the American tech giant repay 13 billion euros ($14.5 billion) in back taxes to Ireland, plus interest. At the center of the complaint is the “Double Irish” loophole, which allowed Apple to funnel profits through two subsidiaries: Apple Sales International and Apple Operations Europe. According to the European Commission, these were companies in name only, and simply existed on paper to "substantially and artificially [lower]” Apple’s tax burden with the European... Read more...
Apple has become quite adept at tax avoidance by using the “Double Irish” loophole that effectively allows the company to shield its profits from tax authorities throughout Europe. Apple, however, is not alone, as companies like Microsoft and Google use similar schemes to save billions of dollars in taxes. Unfortunately for Apple, Italy has determined that the company was illegally shielding its taxable income by funneling cash through its Irish subsidiary, and it is forcing the American company to pay dearly. According to Italian prosecutors, Apple skipped out on 879 million euros ($958 million) in owed taxes between 2008 and 2013 with the Double Irish scheme, which allowed the company to take... Read more...
Ireland will be closing a tax loophole next year that helped save tech companies such as Google, Facebook, Apple, Microsoft, and Twitter billions of dollars. But while the loophole will end next year, companies already using it will be able to continue the practice until 2020. "Aggressive tax planning by the multinational companies has been criticized by governments across the globe and has damaged the reputation of many countries," said Ireland’s finance minister Michael Noonan to the Irish Parliament. "I am abolishing the ability of companies to use the ‘double Irish’ by changing our residency rules to require all companies registered in Ireland to also be tax resident." The... Read more...