Apple will not face investigation in Ireland over its holding accounts

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Government officials in Ireland have voted not to bring in multinational companies (including Apple) for using holding accounts in the nation without paying tax:

As reported by The Guardian:

“An Irish parliamentary committee has voted down calls for multinational companies to be grilled in Dublin about their tax affairs, in the wake of a string of controversies at firms such as Google and Apple which use the Irish tax regime .

During Apple’s questioning over its supposed tax avoidance in the States, the main line of questioning centered around two holding companies whose accounts were based in Ireland. The reason behind the probing was that Apple held hefty amounts of cash in those accounts, and yet they technically weren’t registered anywhere. Irish law doesn’t obligate companies to have an legal “residency”, and so those two companies technically weren’t registered anywhere. A sort of tax-free no man’s land.

These Irish subsidiaries have no members of staff, and so it’s essentially just a couple of holding accounts. It’s understandable then that when the U.S. government sees a company with $78 billion in untaxed revenue going through an international subsidiary with no employees that it gets suspicious. Apple claimed that it simply uses those subsidiaries to collect money left over after it’s paid tax in other European nations. And so, technically, it has already been taxed.

Despite this decision, many countries including those in Europe are keen on changing tax laws to ensure that large corporations like Apple, Google and Starbucks can’t keep on avoiding paying tax.

Via: The Guardian

 

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