Budget to end ‘double Irish’ tax scheme

Budget to end ‘double Irish’ tax scheme: "eneficiaries of the “double Irish” include major technology groups such as Google and a number of large pharmaceutical firms. The scheme, which plays on the difference between Irish law and that in offshore jurisdictions such as the Bahamas, enables firms here to pay very low tax on profit.
The development follows pressure on the Government from Britain, Germany, France, Washington-based politicians, the European Commission and the OECD. Global leaders gave the OECD a mandate last year to develop a plan to tackle “base erosion and profit-shifting” schemes.
The Dutch authorities responded to the first phase of the OECD plan last month by saying they would not move unilaterally to overhaul their business tax regime.
However, the Government will argue today a pre-emptive manoeuvre to scrap the “double Irish” gives it the power to set its own terms. It discussed a four-year “transition” last week, and moves to opt for closure over six years follow concerns raised by pharmaceutical firms the original timeline was too tight."



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