Ireland to Close Tax Loophole Exploited by Apple

I don’t know a whole lot about taxes, but one thing I do know is that it’s apparently pretty easy to not pay them. Apple has been exploiting an Irish tax loophole to shelter $40 billion, something the company has been criticized for. Well Ireland plans to shut down said loophole, which will force the multinational giant to change its plans.

The way the loophole works is the company funnels its profits into Irish subsidiaries, sometimes called “ghost companies,” which don’t have any declared tax residency anywhere in the world. Apple is not the only company doing this, and by doing so, they get out of paying certain taxes.

Ireland is committed to being “part of the solution,” but that likely won’t change much for Apple. Companies will be able to choose any country as their tax residence and countries like Bermuda have zero tax rates.

via BBC

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