Friday 28 April 2017

Ireland no tax haven, US authorities told

Tax authorities there acknowledged that as a result of the 2014 Finance Act, any companies incorporated in Ireland since January 1 2015 cannot be stateless (Stock Image)
Tax authorities there acknowledged that as a result of the 2014 Finance Act, any companies incorporated in Ireland since January 1 2015 cannot be stateless (Stock Image)
Dearbhail McDonald

Dearbhail McDonald

The Government has told US lawmakers that Ireland has closed down a loophole on stateless entities and is "doing exactly what you would want every country to do to avoid tax abuse".

Last January, the Oregon Department of Revenue made a recommendation that Ireland be included as a 'listed jurisdiction' or tax haven.

The Irish authorities say a transition period for significant tax changes, including the closure of the stateless loophole, is common practice in the US, Europe and internationally.

The State of Oregon, where Irish companies employ thousands, cited "the Irish Stateless law that remained in place for certain corporations during the phase-out transition period through 2020".

Tax authorities there acknowledged that as a result of the 2014 Finance Act, any companies incorporated in Ireland since January 1 2015 cannot be stateless.

However, the Oregon Department of Revenue says that the reduction only applies to companies incorporated in Ireland after 2015.

It also says a company incorporated before then that is managed and controlled in other listed countries could pay little, if any, tax on its income.

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