Ireland To Repeal Tax Exemption Deal

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Irish officials are planning to do away with the “double Irish” tax arrangement.

 

The “double Irish” tax deal is a scheme in which one non-Irish business and two Irish businesses take advantage of lenient taxation and pricing laws in Ireland by moving money through related accounts in a corporation to Ireland to produce goods, then sending the money to an entirely untaxed account somewhere else.

Ireland’s Minister of Finance, Michael Noonan, announced on Tuesday that as of January 2015, the “double Irish” tax deal will be will no longer be provided to corporations. “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,” Noonan said during the budget statement Tuesday. Any corporation operating under the deal has until December 31st, 2020 to change their practices.

 

These changes are speculated to be related to recent attacks on Ireland’s business policies, which Noonan alluded to by saying, ““Aggressive tax planning by the multinational companies has been criticized by governments across the globe and has damaged the reputation of many countries.”