While the virtue – signalling lefties and university brainwashed millennials are creaming themselves over the United Nations Pact On Migration, which they see as a big step towards a borderless world; while they chirrup in unison as usual missing the point of what a borderless world would mean. “Oh those lovely dark skinned people will come by the million to live among us and enrich our culture with their enlightened ways and cultural traditions,” they forget that those enlightened ways and traditions include throwing homosexuals off high buildings, stoning women and publicly beheading adulterers.
Whether they think that is a good or bad thing is a matter of opinion. However other implications of a borderless world are not, and our virtue – signalling compatriots might be horrified to learn what other freedoms of movement a borderless world might facilitate alongside unrestricted movement of people. News of Google’s latest and perfectly legal thanks to progress in globalisation, move to protect its obscene levels of profit from taxation in the European Union involve a financial device known as the Double Irish Dutch Sandwich (DDIS). Be careful not to confuse this with A Dutch Reverse Steamboat, which falls into a very different category of activities.
The DIDS accounting strategy involves using a Netherlands-based subsidiary to shift royalties paid in Europe – Google EU is headquartered in Dublin – to Google Ireland Holdings, the company’s Bermuda-based affiliate. According to a Google filing with the Dutch Chamber of Commerce, the search giant channelled 19.9 billion euros ($22.7 billion) through such a structure to its company in the Bermuda tax haven in 2017, around 4 billion euros ($4.5 billion) more than 2016, Reuters reported.
The arrangement, a variation on the dear old ‘Luxembourg Structure’ allowed Google to reduce its tax bill for operations within the EU to single-digit levels, roughly one-quarter of the official rate for those tax jurisdictions.
But little can be done about it because, as Google likes to remind us, it is perfectly legal.
“We pay all of the taxes due and comply with the tax laws in every country we operate in around the world,” Google said in a statement.
“Google, like other multinational companies, pays the vast majority of its corporate income tax in its home country, and we have paid a global effective tax rate of 26% over the last 10 years.”‘
The DIDS strategy, which involves an employee of the Netherlands company who works in Dublin, sending invoices for ‘management services relating to royalties on patents,’ to an employee of each national operation in the EU (these employees also work in Dublin.) The national offices (which are pigeon holes in mail drop addresses, the accounts people who deal with the invoices actually work in – you guessed it, Dublin.) Then the accounts department of the Bermuda company, the staff of which all work in Dublin, send an invoice for something vague like ‘financial consultancy relating to royalties on patents’ to European headquarters (in Dublin you may remember,) where it is dealt with by someone who may have handled all the transactions in the chain without ever leaving Dublin. This allows Google to avoid US income taxes and European withholding taxes. However, thanks to recent changes in Irish law (which followed pressure from the EU), the favorable treatment is slated to end in 2020. That will be a bit of a bugger because they’ll have to move back to Luxembourg. Or maybe not.
The goal of a budgetary proposal in Ireland’s 2015 budget was to shut down the use of so-called “Double Irish” and “Double Irish Dutch Sandwich” structures commonly used by U.S. multinationals, such as Google, Microsoft, and Facebook, among others, to significantly reduce their worldwide effective tax rate on royalties derived from the exploitation of intellectual property .
Because the Irish proposal only addresses revenue from royalties on patents, does it really put an end to the Double Irish structures (with or without the Dutch sandwich) or US corporations exploiting the favourable treatment Ireland offers to hide profits offshore? In a word, No. At least not if your accountants have more brain cells than tits or testicles as the case may be. The same benefits can be achieved by only slightly modifying the existing structures to avoid triggering the new proposed rules, For example by moving Google Europe Holdings (Ireland) Ltd. from Dublin to Google Europe Holdings (Malta) Ltd. whose offices are in …………… Dublin.
The Double Dutch structures are useful for a few reasons. Primarily, Ireland has a 12.5 percent corporate income tax rate for active “trading” income, is English speaking, and is highly educated. Also Ireland uses a management and control standard for determining residency, thus it is possible to protect income earned by the top-tier subsidiary from Irish taxation by placing management in another country (an Irish Non Resident company.)
Thanks to the box checking culture of the US public sector, profits can be entirely avoided by ensuring lower-tier subsidiaries to be disregarded for U.S. tax purposes, because all of the non-U.S. activities are considered to be conducted by a single entity. The only factor that has been altered by the Irish proposals is the residency clause. Under the proposals, moving management and control of an Irish company to a Caribbean nation with which Ireland does not have a tax harmonisation treaty covering corporate residency will no longer achieve the desired objective. Under the treaty with Malta however, it is possible to form an INR, as under existing structures, with its management and control in Malta. Pursuant to the treaty between Malta and Ireland (which will not be overridden by the new proposal), the INR, though trading solely in Ireland, should be treated as a resident of Malta, and not Ireland (See Article 4(3) of the treaty). Malta does not impose any tax on royalties derived from patents or other intellectual properties.
Currency Wars: Venezuela Is About to Ditch the Dollar in Major Blow to US:
In what amounts to the biggest blow yet to the U.S. economy, Venezuelan President Nicolas Maduro said last week that his country will be looking to disengage itself from dependence on the U.S. dollar next week, Reuters reports.
In our omnibus webpage, Currency Wars, we have fully reported on the currency war being waged against the US economy by a group of nations led by Russia, China and Iran, with the aaim of replacing the $US as global reserve currency.
Europe’s Bank Crisis Arrives In Germany: €29 Billion Bremen Landesbank On The Verge Of Failure
… yesterday we observed a surprising development involving Deutsche Bank, namely the bank’s decision to quietly liquidate some of its shipping loans. Reuters reported, “Deutsche Bank is looking to sell at least $1 billion of shipping loans [a market sector] whose lenders face closer scrutiny from the European Central Bank.
Macron and Merkel Agree Eurozone Tax Integration
Hausfrau Volksfuhrer Merkel and Grandmothertrucker Macron France and Germany have agreed to introduce a single Eurozone budget and shared emergency funds for the bloc, as the brussels bureaucrats and globalist puppet leaders try to push the European Union (EU) towards deeper, globalist integration after the Brexit vote
The Demise Of Dollar Hegemony: Russia Breaks Wall Streets’s Oil-Price Monopoly
Significant moves in the global chess game have just rendered the huffing and puffing of warmonger Obama meaningless and will break Wall Street’s monopoly in controlling oil markets. The move is part of Vladimir Putin’s long-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, in effect …
The Demise Of Dollar Hegemony: Russia Breaks Wall Streets’s Oil-Price Monopoly
In a move that went almost completely unreported in mainstream media, Russia has recently opened a market for the trading of physical and ‘paper’ oil (futures) in Moscow in Roubles. This is the most blatant challenge yet to the domination of the US dollar in world trade.
While You Pay Taxes, the Rich Hide Their Money In This City To Avoid Paying Theirs
Michaela Whitton April 14th, 2016 (ANTIMEDIA) — The City of London has long been known as a tax bolt-hole, facilitating money laundering, welcoming dirty money, and turning a blind eye to the investment of dodgy foreign capital. Long before the Panama Papers leak and its resulting embarrassment, stampedes to buy property in the British …
Anti Austerity Protests Bring European Capitals To A Standstill
Angry protests have left many European capitals in chaos as millions of workers joined strikes against austerity measures they claim have made their national economies worse. Trade unions in Spain, Greece, Portugal and Italy staged a series of demonstrations throughout the continent on the …
Government Powerless Against a New Wvve Of Immigration
The government is powerless to stop tens of thousands new migrants heading to Britain after a new EU borders shake-up, Theresa May has admitted. The Home Secretary yesterday warned the Government is legally unable to block Romanian and Bulgarian citizens from coming to the UK under an expansion of …
Poverty tycoons who make themselves millionaires from taxpayer-funded foreign aid budgetIn responce to questions about Britin’s overseas aid budget,David Cameron has said at the United Nations that rather than cutting aid to developing nations in these austere times UK taxpayers should be happy it is being increased. Meanwhile with her own millions safely tied up in trusts Hillary Clinton demands global wealth taxes to raise money for helping the disadvantaged.
The Folly Of Trying To Inflate Away Debt
As the debt crisis grinds on and the creit crunch mutates into the credit famine the clueless politicians and even more clueless economists and academics who advise them can only think of one course of action. That is to inflate away their debt problem by devaluing currency to the extent at whic a bag of potatoes or wheat grain costs $£€ 1 trillion. Inflation is the cruellest tax, destroying the savings and pensions of sensible people and rewarding irresponsibility.
Feeding The Monster
As Spain’s economy nears collapse and economists call for Europe’s taxpayers to stump up still more money for a bigger bailout fund to save bankrupt nations, The Daily Stirrer economic expert under his new nom de plume explains why efforts to save the Euro are throwing good money after bad.
The Eurozone slow Motion Train Wreck Is Still Happening
Some people, even among the well informed crew of sceptics who read The Daily Stirrer may have been taken in by all the politicians’ lies and the official statistics based on manipulated data, and believed things could only get better. Well no matter how many band aids the New World Order stick over the gaping wound in the global economy, the blood soon starts gusing out again. It’s the debt you see, no matter how much money is …