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Irish seek to end tax loophole for MNCs
Aggregated Source: Shanghai Daily: Business

THE Irish government is examining options to close a loophole in its tax system that has allowed multinational firms to sharply cut taxes they pay on profits, the Sunday Business Post said.

Ireland has been criticized by British and US legislators in recent weeks for the fact that multinational corporations like Apple and Google cut their global tax bills by channeling profits through Irish subsidiaries.

The newspaper said the Irish finance ministry was examining options to phase out the "Double Irish," a tax avoidance technique in which multinationals funnel profits through two linked Irish subsidiaries.

Google's international headquarters in Dublin made tax-deductible payments to a Bermudan subsidiary via a Dutch affiliate in a related arrangement known as a "Double Irish Dutch sandwich."

The newspaper did not detail what changes might be made to the Irish tax system.

The Irish government has said the country's tax system is fair and transparent.

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Copyright Shanghai Daily: Business