As the Irish Government moves to close one door to corporate tax avoidance, it is opening another, according to a Wall Street Journal report.
The report says that tucked into legislation to eliminate the much criticised tax structure known as the “Double Irish”- also known in Australia as the “Double Dutch-Irish Sandwich” – is a separate provision that would allow companies to pay no corporate tax on profits earned from patents, licences and other intellectual property.
The finance bill that contains the new measures is expected to be signed into law by year-end. This follows a move announced last month when Ireland said it would end the much-criticised Double-Irish measures,
Hundreds of major companies, including Apple, Google and other technology-based outfits, as well as some pharmaceutical companies, are believed to have been using the “Double Dutch” measures – and it had been assumed the elimination of these measures would see the end of the tax fiddling that has been criticised worldwide, and seen companies like Google and Apple paying little tax in Australia.
The issues involved will be up for discussion at next month’s G20 heads meeting in Brisbane.
