Ireland to close Apple’s tax loophole, but leave bigger one open

“Ireland said on Tuesday it planned to shut down a much-criticized tax arrangement used by Apple Inc to shelter over $40 billion from taxation – but will leave open an even bigger loophole that means the computer giant is unlikely to pay any more tax,” Tom Bergin and Padraic Halpin report for Reuters.

“A U.S. Senate committee investigation revealed in May that Apple had cut billions from its tax bill by declaring companies registered in the Irish city of Cork as not tax resident in any country,” Bergin and Halpin report. “Irish leaders protested angrily against the committee’s characterization of Ireland as a facilitator of tax avoidance. Parliamentary hearings were subsequently held to review Ireland’s tax rules amid concerns that damage to its reputation could jeopardize the foreign investment on which its economy relies heavily.”

“Irish Finance Minister Michael Noonan said on Tuesday that he planned to make it illegal for a company registered in Ireland to have no tax domicile anywhere,” Bergin and Halpin report. “He added that companies could still nominate any country they liked as their tax residence, including zero tax jurisdictions such as Bermuda – a provision that tax advisers said was unusual internationally.

Bergin and Halpin report, “Chas Roy-Chowdhury, head of taxation at the London-based global accountancy body ACCA, said this meant the changes were unlikely to mean higher tax bills for companies that use Irish subsidiaries to minimize taxes. ‘It won’t make that much difference,’ he said.”

Read more in the full article here.

Related articles:
U.S. SEC ends review of Apple taxes, overseas cash – October 5, 2013
Obama, world leaders push big companies like Apple, Google to pay more taxes – September 6, 2013
G20 think tank OECD proposes blueprint for global crackdown on tax avoidance – July 19, 2013
Apple again faces scrutiny after paying no UK corporate taxes for 2012 – July 1, 2013
Bloomberg News’ awful reporting on Apple’s U.S. corporate taxes – May 30, 2013
Thomas Sowell on Apple, corporate taxes, and ‘the road to serfdom’ – May 28, 2013
Former Senator Sununu: Congress wrote the tax laws, so why blame Apple for obeying them? – May 28, 2013
Taxing Apple just taxes you – May 24, 2013
Don’t tax Apple, tax its shareholders – May 24, 2013
If Apple paid more tax, we might pay less or something – May 22, 2013
Apple CEO Tim Cook pounds another nail into the Keynesian coffin – May 22, 2013
Apple CEO Cook makes no apology for company’s tax strategy – May 22, 2013
Apple CEO Tim Cook charms Capitol Hill – May 22, 2013
Rush Limbaugh: ‘High-tech lynching: Senate attempts to crucify Apple’ – May 21, 2013
Nobody on U.S. Senate committee laid a glove on Apple CEO Tim Cook – May 21, 2013
Senator Rand Paul: Senate committee ‘should apologize to Apple for bullying one of America’s greatest success stories’ (with video) – May 21, 2013
Ireland: We have no special tax rate deal with Apple – May 21, 2013
Apple prepares for Washington onslaught: CEO Tim Cook isn’t taking any chances with senators looking to grandstand – May 21, 2013
Watch Apple CEO Tim Cook’s live testimony before U.S. Senate, starting at 9:30am EDT – May 21, 2013
U.S. Senate investigation found no evidence that Apple did anything illegal in avoiding taxes – May 20, 2013
Apple pays under 2% on overseas profits and it’s entirely legal – November 5, 2012
Google, Apple, eBay shouldn’t pay taxes – people should pay taxes – November 25, 2012
So how much did Apple really pay in taxes? – November 1, 2012
Apple’s showdown with the U.S. government over taxes on offshore cash – July 13, 2012
Apple‘s $74 billion tops list of U.S. tech companies’ overseas cash – July 9, 2012
Apple’s dividend move puts spotlight on foreign cash holdings, repatriation tax reform – March 20, 2012
Apple: Good start; and what about the overseas cash? – March 19, 2012
Apple’s foreign cash hoard piles up: $54 billion and rapidly growing – January 11, 2012
Senator John McCain eyes Apple’s $54 billion overseas cash pile – November 3, 2011
Google joins Apple in push for U.S. repatriation tax holiday – October 3, 2011
Apple lobbies Obama for tax holiday, wants to bring overseas bounty home – August 24, 2011
U.S Senate Democrat Schumer allies with Apple, other multinationals on repatriation tax talks – June 21, 2011
U.S. companies push for tax break on foreign cash – June 20, 2011
Apple, Oracle, Duke Energy, others organize lobbying blitz for tax holiday – February 17, 2011


  1. By the way over here in Ireland we like our Guinness, we do. So you can stand me a pint of the best Irish nectar when you see me in Tipperary. Top of the afternoon to you Yankee Doodles. I’ll play a tune on my fife for you too. .

  2. … this? “Apple had cut billions from its tax bill by declaring companies registered in the Irish city of Cork as …” How did Apple get away with redefining the tax laws of Ireland?
    Failte, Seamus, to the land where the ignorant and the fool argue over which is least correct.

  3. Really?

    Of what business is it to any country, how (or if) any individual or business entity adheres to another country’s tax code?

    What justifies this kind of international intrusive nosiness?

  4. Also reported on Reuters: Irish unemployment in September 2013 inched down to 13.4%.

    One should pity the poor citizens of Ireland who must take solace in beer and whiskey as their government representatives allow international corporate welfare, but the citizens of the nation receive paltry benefits from the tax arrangements and no significant employment opportunities from these company shell games.

    We’re sorry, Seamus, that you don’t see the injustice of your plight as self-serving corporatocracy runs roughshod over our planet.

    (It should be noted, to pre-empt the extreme partisans of the USA, that under “socialist” “Obama Messiah”, the current unemployment rate of the USA is 7.3%, with the worst state Nevada registering in at 9.5%. — significantly improved from the unemployment peak of 9.8% that occurred directly after the crash of 2008, which can largely be attributed to 8 years of laissez-faire economic policy and a lax money policy feeding ill-regulated investment banking schemes and dramatically acceletated corporate outsourcing.)

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.