As the European Commission continues its investigation into foreign companies’ tax relationships with certain member states, Ireland has said it plans to phase out its tax program that offers tax breaks to corporations.
Reports say the provision will end next year, though companies already using the agreement will be allowed to enjoy its benefits through 2020.
The tax provision, known as the “double Irish,” allows companies to pay royalties to a subsidiary that, while based in Ireland, is in a tax bracket in a different country with no corporate income tax.
”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,” Ireland’s finance minister Michael Noonan said in an announcement before Parliament on Tuesday.
Noonan acknowledged increase scrutiny from across the globe against countries’ tax relationships with corporations. The Commission is currently investigating several foreign companies, including Apple, Starbucks and Fiat, and their own tax relationships with different member states, on suspicion the tax agreements constitute illegal state aid and unfair conduct.
Ireland’s relationship with Apple and Amazon are part of the Commission’s probe.
Full content: NYTimes
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Vista and Blackstone in Advanced Talks to Acquire Smartsheet in $8 Billion Deal
Sep 17, 2024 by
CPI
Ursula von der Leyen Appoints Spanish Minister to Key Role in European Commission
Sep 17, 2024 by
CPI
US Judge Dismisses Antitrust Lawsuit Against Bayer, Corteva, and Syngenta
Sep 17, 2024 by
CPI
YouTube CEO Argues Google’s Innovation, Not Monopoly, Drove Ad Tech Success
Sep 16, 2024 by
CPI
Samsung, Xiaomi Among Smartphone Brands Allegedly Involved in eCommerce Collusion In India
Sep 16, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
Francisco Javier Núñez Melgoza
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
Julio Garcia
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
Alejandra Palacios Prieto
The Cost of Making COFECE Disappear
Sep 3, 2024 by
Mateo Fernández