By Nathan Ingraham on Email @NateIngraham
Read this on the Verge.com
Huge companies like Apple, Amazon, and Google have been under pressure for their practice of keeping large portions of their profits overseas in countries that are more tax-friendly — Apple alone has $100 billion that isn't subject to US taxes.
Ireland's Department of Finance just released a report detailing the country's international tax strategy, and within it was a note about a potential change as part of Ireland's 2014 Finance Bill. The country says that it will consider a "change to our company residence rules aimed at eliminating mismatches — that can exist between tax treaty partners in certain circumstances — being used to allow companies to be ‘stateless' in terms of their place of tax residence."
Of course, we're a long way away from such a change going into effect. These rules won't apply until January 2015. And that's assuming that this proposal does indeed stay part of the 2014 Finance Bill. However, the company's finance minister says the country will be trying to be part of the solution to the overseas tax issues that have cropped up recently. "Let me be crystal clear. Ireland wants to be part of the solution to this global tax challenge, not part of the problem," Ireland Finance Minister Michael Noonan said.
My view on this is that it is good that the Finance Minister of Ireland wants to be a part of the solution, but with taxes it is such a hard and multiple way approach problem that they will need much longer than anticipated to change any regulation aspect of this.
On another view, this would have ramifications of a global scale for companies all over the world. There are so many problems and loopholes with the tax system in the U.S. there are just as many in other countries alike and there are always going to be ways that people can get around from not paying taxes.
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