Comment Re:The government are doing it wrong. (Score 0) 327
The common scam here in Ireland (and also UK) is that the likes of Google, Starbucks, Microsoft companies set up over here pay large "fees" to their parent company in the US in return for being allowed to be part of the parent company.
Its a loophole that the likes of Google in Europe are essentially being run as a franchise. You are allowed to write off your franchise 'fees' as being operating costs so you pay no tax on them. So Google Ireland Ltd. might pay several billion a year to Google US for their "google license". Its more complicated than that though, there are various intermediate companies involved on the Cayman Islands and what have you to further reduce the tax burden. All completely legal. We're being scammed
The common argument in favour over here is "but these companies are providing money to the economy, employing people, etc." but it isn't really fair. If I set up a company in Ireland I would have to pay lots of tax and have lots of regulation to comply with but these sh1tbags like GOOG get away with it because (a) They're big and can threaten to leave Ireland and (b) They can afford to pay their accountants to suss out the best tax avoidance scheme. So Google aren't really carrying their weight but even the govt is afraid to challenge them by changing the law.
Its a loophole that the likes of Google in Europe are essentially being run as a franchise. You are allowed to write off your franchise 'fees' as being operating costs so you pay no tax on them. So Google Ireland Ltd. might pay several billion a year to Google US for their "google license". Its more complicated than that though, there are various intermediate companies involved on the Cayman Islands and what have you to further reduce the tax burden. All completely legal. We're being scammed
The common argument in favour over here is "but these companies are providing money to the economy, employing people, etc." but it isn't really fair. If I set up a company in Ireland I would have to pay lots of tax and have lots of regulation to comply with but these sh1tbags like GOOG get away with it because (a) They're big and can threaten to leave Ireland and (b) They can afford to pay their accountants to suss out the best tax avoidance scheme. So Google aren't really carrying their weight but even the govt is afraid to challenge them by changing the law.