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Wednesday, Oct 16
Ireland to close tax loophole but "Double Irish" to stay
- Ireland's Finance Minister, Michael Noonan, intends to introduce a law that will prevent multinational companies registered in the country from remaining "stateless" in terms of their tax residency and avoid paying billions of dollars in taxes.
- The moves comes amid international criticisms of Ireland's laws, which have allowed Apple (AAPL) to pay levies of just 2% or less instead of the country's 12.5% rate.
- However, the legislation won't stop corporations from deploying the "Double Irish," which lets firms, including Google (GOOG) and Adobe (ADBE), use the differences in the U.S. and Irish tax codes to shift profits to low-tax jurisdictions.