Dublin Opinion

Posted in Banks, Ireland | 1 Comment

One Response to “THE TRUE BENEFICIARIES OF IRELAND’S TAX REGIME”

1. on 11 May 2011 at 8:38 pm1former glory

   Ha. I was wondering what the cylinder in the National Conference Centre was for.

   Also, I think our blindness in relation to Profit Switching Transfer Pricing is just as much a draw for multinationals as anything.

   From: http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-revenue-lost-to-tax-loopholes.html

   “The Double Irish

   As a strategy for limiting taxes, the Double Irish method is “very common at the moment, particularly with companies with intellectual property,” said Richard Murphy, director of U.K.- based Tax Research LLP. Murphy, who has worked on similar transactions, estimates that hundreds of multinationals use some version of the method….

   Dublin Office

   …Google Ireland Limited, which employs almost 2,000 people in a silvery glass office building in central Dublin, a block from the city’s Grand Canal. The Dublin subsidiary sells advertising globally and was credited by Google with 88 percent of its $12.5 billion in non-U.S. sales in 2009.

   Allocating the revenue to Ireland helps Google avoid income taxes in the U.S., where most of its technology was developed. The arrangement also reduces the company’s liabilities in relatively high-tax European countries where many of its customers are located.

   The profits don’t stay with the Dublin subsidiary, which reported pretax income of less than 1 percent of sales in 2008, according to Irish records. That’s largely because it paid $5.4 billion in royalties to Google Ireland Holdings, which has its “effective centre of management” in Bermuda, according to company filings. ” ”

   Don’t be evil - my arse.

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