Ireland Closing Tax Loophole Used by Tech Firms

Posted by at 12:58 pm on October 14, 2014

IrelandThe Irish government is preparing to close a tax loophole that many technology companies are using to their advantage. The government has announced changes to tax law covering Ireland, which will prevent Google, Apple, and other large enterprises from abusing current tax rules in what is commonly known as a “Double Irish” tax arrangement.

“Aggressive tax planning by multinational companies has been criticized by governments across the globe and has damaged the reputation of many countries,” said Finance Minister Michael Noonan according to Reuters. “Schemes that exploit mismatches in tax legislation are being heavily scrutinized by the OECD (Organization for Economic Co-operation and Development) and others and through the Base Erosion and Profit Shifting project they will come to an end over time.”

While the announcement covers a wide array of tax schemes, Noonan added extra measures to affect the “Double Irish” arrangement, namely by requiring all companies registered in Ireland to also be “tax resident.” The change will apply to new companies from the 1st of January 2015, though existing companies will have a transition period until the end of 2020.

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