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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.
Comments (8)
  • TimothyF
    , contributor
    Comments (223) | Send Message
     
    The US govt should alter its tax policy: lower corporate tax, raise income tax for +250K incomes, close loopholes, and then outcast any individual or corporation dodging taxes.

     

    Until then, you cannot blame corporations acting in a morally vile way, as they do not care about any other stakeholder than the shareholder.
    16 Oct 2013, 05:27 AM Reply Like
  • bfmil
    , contributor
    Comments (221) | Send Message
     
    Ya know, I'm sick of people that think 250k a year is a lot of money. It's all relative if you knew anything about tax code. I made 345k last year . Do you want to know what I paid in taxes on the whole ? Including fed tax, county tax, school tax, property tax, township tax, just to name a few, almost 68%. Are you capable of doing the math ? I'm sure the percentage is a hell of a lot more than you paid, unless you are one of those arrogant liberal ass holes that sit in their multi million dollar ivory towers looking down at the rest of us. I also donated over 20k to my favorite charities because I was able to not because I wanted any write offs. The Wounded Warrior project was just one of them. If it wasn't for those guys, you and I wouldn't be able to sit here and bitch back and forth. Not to mention the way vets are screwed over by the gov't when they come home some with no arms or legs. Not to mention the idiots in DC flexing their egos. They make me want to puke. Did you ever stop to think what you'd do with the extra money you'd have if you didn't have to pay taxes at all ? Or maybe you already don't and are riding the Obama give away wagon.
    16 Oct 2013, 10:04 AM Reply Like
  • gelstretch
    , contributor
    Comments (811) | Send Message
     
    bfmll

     

    Your missive is overly brief ( by the way, I do agree with you ), insofar as consideration of the BIG picture.

     

    We who are "makers" are overtaxed for the reason the elected officials who write our laws are very insecure in the job they hold as legislators. They believe if they can buy votes through the mantra of exercising "compassionate behavior" is awarding as many potential voters with cost free benefits, they then will prevail in the next election.They do not get much right, but in this regard, they have it nailed.

     

    This is why you are overtaxed, and the country has evolved into a "welfare state', with the general populace voting their conscience of "greed and need". For this reason, you will be welcoming Hillary as your leader as the next President..... it is too late to fix the problem !
    16 Oct 2013, 10:47 AM Reply Like
  • JG2000
    , contributor
    Comments (378) | Send Message
     
    There is no valid argument that I know of that says Apple should pay Ireland's 12.5% rate on their holding company money (other than perhaps sales of products directly in Ireland which they probably already pay the standard rate). The money parked in their holding company has already been taxed at the prevailing rates in the countries where the sales occurred. The money is not tax-avoided it is tax-deferred in the sense that to use it in the US they would need to pay the going rate. However, this is a double taxation. At the very least the money repatriated should allow a deduction for the taxes already paid in the countries where the sales occurred. Profits made on stock sales is also taxed so really that makes it triple taxation.

     

    The government should set a lower and fairer corporate tax rate which allows individuals and other stockholders to garner more profit which then generates more income tax...so the government would still get a good pound of flesh they should be happy with.
    16 Oct 2013, 07:49 AM Reply Like
  • jsijimmy
    , contributor
    Comments (286) | Send Message
     
    Ireland is used as a tax evasion (yes, i said it) scheme by corporations to avoid paying any tax on income in the US of A. As such, I applaud the Irish for finally acting like men and standing up to the corporate psychopaths. Furthermore, the US of A should start acting like men, and if corporations find another 'haven,' say Bermuda or the Camen Islands to park their money, the US government should go ahead and implement a VAT tax to get the tax money up-front. Caveat - if the corporation that makes over 80% of it's revenue in the US decides to "come back home," the VAT will be removed and they will play the usual income tax on Net Income. Try that on for size!
    16 Oct 2013, 08:13 AM Reply Like
  • DPaulB
    , contributor
    Comments (2) | Send Message
     
    There is nothing immoral about seeking to pay legally, the least tax.
    Corporations by their nature are fictitious individuals and are morally neutral. You may view the individuals who run them for the benefit of their stockholders and/or the stockholders themselves as immoral.
    That is another story.
    16 Oct 2013, 08:48 AM Reply Like
  • dmattern
    , contributor
    Comments (45) | Send Message
     
    only humans, i.e. people, individuals, pay taxes whether directly or via their dividends and capital gains. why should corporations pay taxes? less tax, corporations earn more for shareholders increasing the taxes they pay. it can be a zero sum game. we should like general electric paying no tax. being legal, the government in its wisdom sets this up.
    16 Oct 2013, 04:49 PM Reply Like
  • waterman
    , contributor
    Comments (213) | Send Message
     
    my understanding is that Apple has set asides for taxes on their overseas money if they need to pay taxes to the U.S. or other countries. I think Peter Oppenheimer and tim cook have noted this in some of their financial teleconferences.

     

    Keep in mind it is not just Apple who keeps money out of the U.S. Google and others do this
    16 Oct 2013, 05:40 PM Reply Like
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