Ireland to Phase Out ‘Double Irish’ Tax Trickery, to Google’s Chagrin
Ireland’s Ministry of Finance announced that Ireland will phase out its controversial (but legal) tax scheme known as the “Double Irish,” which lets companies, especially tech companies, drastically reduce their overseas tax burden.
“I am abolishing the ability of companies to use the ‘Double Irish’ by changing our residency rules to require all companies registered in Ireland to also be tax resident,” Irish Finance Minister Michael Noonan said in a statement accompanying the government’s new 2015 budget on Tuesday. “This legal change will take effect from the 1st of January 2015 for new companies. For existing companies, there will be provision for a transition period until the end of 2020.”
The move will affect many tech firms that take advantage of this arrangement such as Apple, Amazon, Adobe, Microsoft, and Google. Last year, for example, Google alone cut billions off of its tax bill.