Ireland moves to shut down tax loophole
LONDON/DUBLIN: Ireland said on Tuesday it planned to shut down a much-criticised tax arrangement used by Apple Inc to shelter over US$40 billion (RM126.88 billion) from taxation - but will leave open an even bigger loophole that means the computer giant is unlikely to pay any more tax.
A United States 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.
Irish Finance Minister Michael Noonan said on Tuesday he planned to make it illegal for a company registered in Ireland to have no tax domicile anywhere.
But Chas Roy-Chowdhury, head of taxation at the London-based global accountancy body ACCA, said the changes are unlikely to mean higher tax bills for companies that use Irish subsidiaries to minimise taxes.
He said Apple could continue its operations largely unchanged by nominating as its tax residence Bermuda or another jurisdiction that does not charge corporate income tax. Reuters