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They won't have paid taxes in Ireland. that's the point. Like Apple google negotiated a deal that only Ireland profits are taxed in Ireland but European profi
by Marazan 11y ago
They won't have paid taxes in Ireland. that's the point.
Like Apple google negotiated a deal that only Ireland profits are taxed in Ireland but European profits are declared there but are untaxed.
The UK could reduce it's tax rate to 1% and they'd still have their Irish tax structure as that gives them 0% across all of Europe.
It's hard to go lower than 0.
- jackweirdy 11y agoWhy are European profits declared in Ireland untaxed? I don't understand that part
- madaxe_again 11y agoYou don't declare profits. You just invoice or lend between international elements of your group with timing such that at the end of year/quarter/reporting period in each jurisdiction you've lost money or made none. A lot of money vanishes this way, a lot of money is invented this way.
- jackweirdy 11y agoAhh. That's smart. I guess that's related to the other strategy I've heard of national HQs charging each other made-up sums in 'branding fees' to use the company logo.
- Marazan 11y agoPart of the EU rules is that it is a single market. However the Irish deal treats it as individual markets from the point of view of the Irish government and soobpy collects taxes on the Irish generated part.