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No that different from Google's, Facebook's, Apple's, et al. methods employed in Europe to avoid paying taxes.
by antr 14y ago
No that different from Google's, Facebook's, Apple's, et al. methods employed in Europe to avoid paying taxes.
- lquist 14y agoFor those that are unaware, parent is referring to the "Double Irish" strategy (http://en.wikipedia.org/wiki/Double_Irish_arrangement http://en.wikipedia.org/wiki/Double_Irish_arrangement).
- antr 14y agoNot really. I'm referring to the operating companies acting as cost centres, rather than profit centres. Avoiding taxes at the HoldCo is another ball game i.e. double Irish.
- beagle3 14y agoVery different, actually: Supposedly, if you look at the big picture, then the amount of taxes actually paid matches the amount that would have been paid had the structure been simple. The IRS is supposedly not that foolish. However, this structure can let the studios (and similarly, record companies) keep a larger share of the real profit, rather then actually do "profit sharing". Supposedly.
- rmc 14y agoAlthough Google Ireland pays feck all taxes and has a tiny 'profit', they do employ thousands of highly paid (& highly taxed) employees localy.
- antr 14y agoI don't think you understood my comment/article. I'm not referring to tax loopholes/advantages, but running operating companies at a country level as cost centres.