The world falls short of tax haven places year after year. Recently, Ireland’s legislators have closed another loophole helping to avoid paying tax. Such a novelty primarily affected Apple Inc. that managed to save tax on more than $40 billion. According to Ireland’s Finance Minister Michael Noonan, since now the foreign companies incorporating a business will have to declare a special tax residency. However, alien business intending to take advantage of legislation and sidestep large levies can move their capital in Bermuda, for example, that still keeps a zero rate. That is why, many economists are sure that such a step will hardly boost the money inflow to the Irish treasury.
Besides Apple, there are also other giants that registered their daughter enterprises in Dublin such as Google Inc. and Microsoft Corporation. Despite Noonan’s protestations, nobody believes that the U.S. did not have a hand in Ireland’s tax reform. Especially considering that Apple brought out about $102 billion in cash in order not to pay a high income tax in the United States. Most of the savings are kept in Ireland, where the corporate tax is a little more than 12%. The iPhone maker minimized the costs legally, so there are no grounds to file accusations against it. "We pay all the taxes we owe," Apple CEO Tim Cook said.
