Irish Government May Close Apple's Biggest Tax Loophole

[wraggster]

"Ireland and its tax system came under some extreme scrutiny earlier this year (http://apple.slashdot.org/story/13/05/21/0222210/web-of-tax-shelters-saved-apple-billions-inquiry-finds) when it was revealed that Apple funneled billions of dollars of revenue though three subsidiaries based in the country. Thanks to a loophole, none of these subsidiaries were tax-resident in Ireland, meaning they didn't even have to pay Ireland's relatively low 12.5% corporation tax rate. Worryingly for Apple, Ireland's finance minister may now shut this loophole (http://www.independent.ie/irish-news/tax-avoidance-crackdown-pledged-29662222.html). A measure within a new budget bill (http://budget.gov.ie/Budgets/2014/Documents/Department%20of%20Finance%20International%20Tax%20 Strategy%20Statement.pdf) (PDF) woulddisallow Apple's status as a 'stateless' corporate entity (http://www.ibtimes.co.uk/articles/514060/20131015/apple-tax-loophole-closed-irish-government.htm) for tax purposes. Apple will still be able to select a country like Bermuda as its tax residence (http://in.reuters.com/article/2013/10/15/us-ireland-tax-idINBRE99E0PD20131015), but it's a step in the right direction."

http://apple.slashdot.org/story/13/10/15/218209/irish-government-may-close-apples-biggest-tax-loophole