“The end of the notorious corporate tax loophole known as the ‘Double Irish’ will not deter U.S. technology giants such as Google and Apple from further investment in the country, Ireland’s Prime Minister, Enda Kenny, told CNBC,” Jenny Cosgrave and Seema Mody report for CNBC.
“The Taoiseach said the end of the tax strategy would not hinder the very ‘congested investment line’ into the country and the closing of the loophole marks a new period of ‘certainty and clarity’ for foreign direct investors,” Cosgrave and Mody report. “‘I think Apple are here for the long term – many of the others are intent on expanding and not contracting. That’s because of the range of technology, our track record and essentially our talent pool which is quite extraordinary given the flexibility of our education system,’ he told CNBC, speaking from Europe’s largest annual start-up and technology event, the Web Summit.”
“Ireland is set to close the “double Irish” loophole — which allows companies to channel royalty payments for intellectual property from one Irish subsidiary company to another that is based in a tax haven — from the beginning of next year, following pressure from the European Union,” Cosgrave and Mody report. “Existing companies will have a transition period until 2020 and Kenny said the development of an information “patent box” or corporate tax subsidy arrangement is in the pipeline. ‘The development of our our information patent box will make Ireland really a global hub for innovation an entrepreneurship,’ Kenny said.”
Read more, and watch the video, in the full article here.